Coinbase CEO sees non-trading businesses set to account for up to 50% of revenue

Coinbase co-founder and chief executive Brian Armstrong expects the company’s non-trading business to grow substantially in the long term.

\n\n

In a CNBC interview he said that revenue from divisions such as debit-card services, Coinbase Earn, staking platform and custodial services could exceed 50% of the company’s revenues in the next five to ten years.

\n\n

The exchange business is currently Coinbase’s main source of profit — last year trading fees accounted for 86% of total revenue.

\n\n

Armstrong does not expect margin compression even in the mid term.

\n\n

But in the long run, yes, I do think that compression could occur, as in any other asset class.

\n\n

According to Armstrong, Coinbase has begun investing in non-trading sources of revenue to provide a “stable and predictable” income in the future.

\n\n

He called the direct listing of the company on Nasdaq a milestone for the crypto industry.

\n\n

As reported, Nasdaq set a reference price of $250 for Coinbase shares ahead of trading.

\n\n

The market had valued the company’s potential market capitalization at up to $160 billion. However, David Trainer, CEO of New Constructs, argues that the fair value after the IPO should be $18.9 billion.

\n\n

Subscribe to ForkLog news on VK!