Coinbase may offer zero trading fees as it tests new subscription service
Coinbase Pro, the largest crypto exchange in the US, is currently exploring a new subscription service that would allow users to buy, trade, and sell cryptocurrencies with paying fees for each trade.
The subscription service, called Coinbase One, will offer exclusive membership services such as access to enhanced features and zero-fee trading to customers, The Block reported earlier. However, customers would still need to pay spread fees on cryptocurrency sales and purchases.
Specifics such as subscriber costs were not disclosed in the statement, and the product would be launched for a set number of users as a pilot program. Coinbase’s transaction fees are mainly derived from individual investors, and the move could expand the exchange’s retail business.
“We’re always looking to learn more about how we can best serve our customers in different ways,” a spokesperson told Insider. They added, “Right now we are still in early stages so everything about the future product experience will be shaped by the feedback we receive from our users.”
Investment app Robinhood also offers a similar service that lets users access premium services such as margin trading.
In addition, Coinbase announced on Wednesday that users can now lend up to $1 million from Coinbase by putting their Bitcoins as collateral. Coinbase had launched its loan service in June with an initial maximum loan amount of $100,000. They have now increased the limit to $1 million.
Customers can borrow up to 40% of their Bitcoin value and have to pay an interest rate of 8% p.a. Additionally, loaned customers are required to pay a minimum of $ 10 monthly interest with no deadline for repayment of the loan.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow
