Surojit Chatterjee, who is the CPO of Coinbase, recently said that the company wishes to be like the AWS of crypto, considering the launch of their own infrastructure project, titled Coinbase Cloud.
The company is currently building a suite of products that functions as a type of crypto computing service, which is intended to help developers in the space build applications at a much quicker rate.
Currently, the revenue base of the company is fully reliant on their transaction fees alone – which accounts to more than 90%. It is usually big companies like Google or Facebook that rely on a single revenue stream, like advertising, to bring in a majority of their profits. In the world of crypto, market volatility is a major factor to be considered. So, when Coinbase’s trading volume dropped drastically due to the crypto market lull a few months ago, it certainly raised eyebrows. Here comes the need for a diversified revenue stream.
When AWS (Amazon Web Services) was introduced by the company, it sat on the back burner for a long time, being significantly overshadowed by the huge demand for the eCommerce services. Today, it is Amazon’s main profit engine, accounting for 63% of the parent company’s total revenue.
Similarly, Coinbase seeks to supplement their trading services with subscription services that will not be heavily impacted by the volatile market. This includes introducing an institutional custody service, a learning portal with crypto rewards, an eCommerce checkout program, as well as providing Visa debit cards to users. Currently, Coinbase has also put on trial a subscription-based service which intends to provide a monthly-based trading allowance for a pre-determined fee.
All in all, Coinbase executives believe this is just the beginning. Crypto enthusiasts will have to see whether the company can achieve these goals a few years down the line.