Sharing with the investment community, Mr. Asheesh Birla, former Director of RippleNet, said that Coinbase has ambitions to surpass the status of an ordinary exchange. Specifically, billionaire Brian Armstrong's company wants to be a crypto bank.
According to Birla, Coinbase can attract investors by building a crypto-economy system. In it, people can access digital assets more transparently and easily. To do this, Coinbase will have a skillful way of dealing with US authorities and an international banking network.
Coinbase has ambitions to become a crypto bank. Coinbase has ambitions to become a crypto bank.
According to Coinbase's Q1/2023 financial report, interest income and custody fees make up the majority of the company's revenue. Asheesh Birla emphasized that the interest in depositing stablecoin USDC alone helped Coinbase earn $199 million, or 18% of total revenue.
Besides, Coinbase also makes more money from large institutions instead of retail investors. Statistics show that revenue from institutional investors increased by 67% over the same period last year.
From the two factors above, experts assess how the Coinbase exchange is more and more like a bank.