Coinbase earnings show the company is now much more than just an exchange

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Coinbase beat earnings and even though $COIN stock dropped, what is clear is that the company has found ways to increase revenue regardless of market conditions. noshitcoins investigates.

, the USDC's issuer, they gain from the interest rate offered by the stablecoin reserves.

Even so, the numbers suggest that Coinbase has successfully lessened its dependence on trading fees. Subscription and service revenues matched trading revenues in the first half of 2023, a shift more noticeable when you consider transaction costs consume about 15% of its revenues. This suggests that Coinbase has transitioned from a trading firm to a service broker, prioritizing recurring revenues.

Second, Binance could be effectively shut down by regulators. Despite its stance as the reigning champion of cryptocurrency exchanges in terms of trading volume, Binance has beenworldwide, and not the good kind. If regulatory pressures were to effectively shut down Binance, this could pave the way for Coinbase to seize a substantial increase in market share. The knock-on effect would likely be a significant boost in service revenues for Coinbase.

Lastly, it's important to remember that while Coinbase's current focus is on cryptocurrency trading and custody services, the company has plans to diversify and expand its product offerings. For instance, it's planning to launch a margin trading platform and a cryptocurrency lending platform. These new products and services have the potential to generate significant revenue from services and subscriptions.

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