Leading American cryptocurrency exchange Coinbase is testing a new subscription product dubbed Coinbase One that will allow users to trade cryptocurrencies without paying fees.
Coinbase Launches Zero Trading Fee
According to the company’s blog post, the new subscription product would offer customers zero trading fees, meaning users can buy and sell cryptocurrencies without the inclusion of transaction fees.
Coinbase One will also provide 24 hours of customer support to users who are having trouble with the platform as well as $1 million in account protection to secure your account from unauthorized users.
However, the beta program will only be accessible to a limited number of customers.
Diversifying Coinbase’s Revenue Steam
Trading fees have been a great source of revenue for crypto exchanges. In the last quarter of 2021, Coinbase generated over $2.2 billion from transaction fees.
Many users have complained about the exorbitant trading fees charged by Coinbase, and now the exchange is looking to dervisify its revenue stream in order to reduce its fees.
“We’re diversifying this revenue stream and expanding our non-transaction revenue streams,” Alesia Haas, the chief financial officer of Coinbase, said during the company’s quarterly earnings call.
Increasing Security
Cryptocurrency exchanges are primary targets for hackers, and as such, Coinbase has been making efforts to protect its customers’ funds and information.
In the quest to safeguard its platform from these attacks and keep it safe for its more than 73 million global users, Coinbase recently announced the acquisition of the Israeli crypto infrastructure company, Unbound Security.
The exchange disclosed its plans to utilize Unbound Security’s Multiparty Computation (MPC) technology to improve the security of its operations.
“Crypto can’t grow without strong cryptography and strong security, but it also needs to be user friendly. Secure multi-party computations are an application of advanced mathematics to enable crypto assets to be stored, transferred, and deployed more securely, easily, and more flexibly than ever before,” Coinbase noted.
Unbound Security provides a unique MPC which occurs as a form of cryptography that offers both cold and hot storage for users. MPC also allows multiple users on Blockchain to analyze a computation without revealing their personal data.
