Coinbase One Expansion: Impact on Crypto Landscape and Future Subscription Models

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Despite the stringent regulatory environment in the US crypto market, Coinbase, a San Francisco-based crypto exchange, is broadening its scope to other regions. The exchange recently updated its Coinbase One trading platform and extended product access in the US, UK, Germany, and Ireland, according to a recent blog post. With this update, Coinbase One members in these countries can now access 24/7 customer support and trade their favorite assets with zero fees.

Coinbase One, a subscription product, features exclusive benefits for its members, such as zero trading fees, prefilled tax form 8949, and partner deals. The exchange initially introduced the product’s beta in fall 2021 but has since updated its features and rolled it out to the public in the UK, US, Germany, and Ireland. Furthermore, Coinbase is planning to expand the service to 31 other European countries in the coming months.

Subscribers to Coinbase One can access the best deals both within and outside the crypto industry. The updated version includes 90 days of exclusive crypto market insights and analytics through Messari Pro. Additionally, it offers a 1% match (up to $100) on initial user deposits or rollovers, a free Alto IRA account or 50% off a Crypto IRA account for six months, and more enticing deals.

Coinbase’s announcement hints that more enhancements for the product are on the horizon. The exchange mainly relied on trading fees for revenue previously, particularly during the crypto bull run. However, the ongoing bear market has prompted the firm to explore other avenues for generating revenue and retaining its customers.

In an interview with Techcrunch, Coinbase’s senior product management director, Phil McDonnell, reflected on the higher trading revenue generated 18 months ago during the bull market and the subsequent decline due to crypto winter. According to McDonnell, fostering a deeper relationship between Coinbase and its customers would benefit both parties.

The new approach appears to be paying dividends for the company. Coinbase’s subscription and services revenue rose 138% from $152 million in 2022 to $361.7 million in Q1 2023 alone. The exchange’s Q4 2022 shareholder letter revealed that overall services and subscription revenue increased more than 17 times to $793 million in 2022, up from less than $50 million in 2020.

This expansion strategy raises questions about whether other platforms will follow suit and introduce similar subscription products to engage and retain customers. As the crypto ecosystem matures, organizations may experiment with new strategies to attract and maintain customers amid this ever-changing landscape.

Source: Cryptonews

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