in

Coinbase CEO expects 50% of the firm’s revenues to come from non-trading businesses.

Coinbase CEO expects 50% of the firm's revenues to come from non-trading businesses.


Coinbase CEO Brian Armstrong expects the company’s non-trading businesses to grow substantially in the long term. In an interview with CNBC on Wednesday, the CEO said businesses like Coinbase Earn, debit cards, staking, and institutional custody could account for 50% or more in the next five or ten years. At present, the crypto exchange business of Coinbase is its primary revenue contributor. Last year, for instance, trading fees were 86% of Coinbase’s total revenue. 

 

Coinbase has started to invest in non-trading revenue streams.

Brian Armstrong said Coinbase hadn’t seen any margin compression yet, and he wouldn’t expect it to compress in the short term. “I don’t expect fee compression in the short and medium-term, but longer-term, yes, I do think there could be compression, just like every other asset class out there.” To that end, Coinbase has started to invest in non-trading revenue streams and expects them to provide “steady” and “predictable” revenue in the future, said Armstrong. On Coinbase getting listed on Nasdaq, the CEO said he hopes the company’s direct listing will be viewed as a “landmark moment” for the crypto space. 

 

“We are not tied to any particular crypto asset.”

Armstrong further said that investing in both bitcoin and Coinbase stock could be a good bet because both are “great ideas.” Making a case for investing in Coinbase, Armstrong said, “we are not tied to any particular crypto asset, we are adding support for over 100 crypto-assets now, and there will be more and more in the future.” “We are also kind of what you might call an indexed bet or a levered bet on the crypto space more broadly because we are selling picks and shovels,” Armstrong continued. Twitter CEO had earlier quote tweeted the news of Coinbase getting listed on Nasdaq, “Why do we need an alternative?” 





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

MakiSwap Raises $1.4M to Build AMM Platform on Huobi Eco Chain

MakiSwap Raises $1.4M to Build AMM Platform on Huobi Eco Chain

CryptoNewsZ

Fantom & Clover Partner to Extend Cross-Chain DeFi Adoption