How Do They Make Money?

Coinbase is a remote-first company that:

• offers consumers their primary financial account for the crypto economy

• offers institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace

• offers developers a suite of products granting access to build onchain

They make their money mostly through transaction fees. Here's a list though:

• Transaction fees for consumer executed trades, deposits, and withdrawals

• Sequencer fees each time a transaction is processed on the Base blockchain

• Stablecoin revenue - through an arrangement with Circle, the greater the proportion of USDC in circulation generally and on the Coinbase platform, the greater their revenue generated under the agreement.

• Fixed percentage commission on all staking rewards

• Interest and finance fees for institutional custodial funds, cold storage, transactions, loans - In 2024, the SEC approved 11 spot Bitcoin ETF applications, nine of which partner with Coinbase, and nine Ethereum ETF applications, eight of which partner with Coinbase

• Coinbase One subscriptions and other subscription licenses - consumers pay a monthly or annual fee to unlock a variety of benefits, including limited reduced transaction fee trading, higher staking and USDC rewards than non-Coinbase One subscribers, priority customer service support, and offers from third-party partners

• Corporate interest from assets held at third-party banks and asset managers