Coinbase Sees Long-Term Subscription Revenue Growth, NFTs Remain a Priority

Coinbase CEO Brian Armstrong says the exchange has been generating subscription revenue streams for three years and will continue to do so long term. New

U.S. cryptocurrency exchange Coinbase aims to increase revenue from long-term subscriptions to combat potential squeeze on profit margins.

The company's founder and CEO, Brian Armstrong, discussed the long-term prospects for the US cryptocurrency exchange in an extensive interview with CNBC's Crypto World on August 23. the future and how the company plans to anticipate this possibility.

Armstrong underscored his belief that profit margin compression is bound to happen in the future as more exchanges and competitors launch similar products and services that could compete for market share:

"That's why we invest in so much subscription and service revenue today and realize that trading fees will still be a big part of our business 10 or 20 years from now. But I would like to get to a place where more than 50% of our revenue comes from subscriptions and services."

Armstrong said the company has focused on this change over the past three years, which has resulted in subscriptions and services accounting for 18% of the company's revenue stream. This represents an increase from the 4% contribution to revenue in 2020, according to Armstrong.

The CEO of Coinbase noted that its staking offerings and USDC custody services were the main drivers of subscription and service revenue, while the development of Coinbase Cloud and other ongoing projects would further contribute to the growth of these revenue streams.

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