According to a Blockworks report, major cryptocurrency exchange Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) is testing a new subscription product that allows users to exchange digital assets without paying trading fees.
According to the report, Coinbase One, which is already in beta, will allow users to trade cryptocurrencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) with no trading fees. Users would also receive $1 million in account protection and direct phone support from a Coinbase One beta team member 24 hours a day, seven days a week.
Coinbase did not immediately respond immediately to a request for comment.
According to CFO Alesia Haas, transaction revenue from trading fees has historically accounted for the lion’s share of Coinbase’s revenue. The cryptocurrency exchange generated $2.2 billion in revenue solely from transaction fees in the fourth quarter.
Furthermore, the appeal of commission-free cryptocurrency trading has led to the rise of brokerage platforms such as Robinhood Markets Inc (NASDAQ: NASDAQ:HOOD) among retail traders.
Coinbase Users will not be reimbursed for prior trading fees and will be billed a monthly recurring fee. The cryptocurrency exchange’s spokesperson declined to reveal the product’s price. Coinbase shares closed 7.46 percent lower on Friday, at $160.07.
Coinbase Global, Inc., also known as Coinbase, is an American company that runs a cryptocurrency exchange platform. Coinbase is a distributed company; all employees work remotely, and the company does not have a physical headquarters. By trading volume, it is the largest cryptocurrency exchange in the United States. Brian Armstrong and Fred Ehrsam founded the company in 2012.