Coinbase launches its subscription service, Coinbase One, in 35 countries, signaling a shift in its revenue model amidst ongoing legal disputes with the U.S. Securities and Exchange Commission.
Coinbase has announced the launch of Coinbase One, a new subscription service, in 35 countries worldwide, including the United States, United Kingdom, Germany, and Ireland. The initial roll-out is slated to expand to 31 more countries in the near future, though a specific timeline remains unclear.
The shift towards a subscription-based model comes in the wake of challenges faced by Coinbase in sustaining trading fees, which traditionally formed a significant chunk of the company’s revenue.
However, the firm seems to be faring well in the new direction, with subscriptions and service revenue clocking in at $362 million, marking a 28% quarter-over-quarter increase from the last quarter of 2022, as revealed in their early May earnings report.
Portfolio co-manager of Amplify Transformational Data Sharing ETF (BLOK), Dan Weiskopf, praised the strategic shift, noting that the company’s ability to balance its business lines underscores the potential momentum behind what the firm is aiming to build.
However, amidst the new business strides, Coinbase also navigates turbulent waters with the U.S. Securities and Exchange Commission (SEC). Earlier this year, the SEC issued a Wells notice to Coinbase. In response, a court ordered the SEC to answer Coinbase’s petition.
The SEC responded by noting the recency of Coinbase’s filing and supplementing the record, leaving the issue under ongoing legal scrutiny.
The launch of Coinbase One presents a significant strategic move in Coinbase’s business model amidst evolving revenue streams and regulatory landscapes.
Source: https://crypto.news/coinbase-one-launches-amid-regulatory-challenges/