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Coinbase officials say the exchange will be the AWS of crypto

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coinbase ceo
coinbase ceo

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Coinbase, the largest cryptocurrency exchange in the US, shows major ambition in terms of cryptocurrency investments. Coinbase is now planning to develop Coinbase Cloud and have its own cloud infrastructure solution. By launching Coinbase Cloud, the exchange seeks to become one of the most popular cloud service providers like Amazon Web Services (AWS).

Coinbase launching cloud infrastructure

The Chief product officer at Coinbase, Surojit Chatterjee, held an interview with Forbes, stating that the exchange wanted to be the AWS of crypto.

“We are building this whole Coinbase Cloud suite of products that you can think of as crypto computing services to help developers build their applications faster,” Chatterjee stated.

Earlier this year, Coinbase had announced the purchase of Bison Trails, a cloud staking infrastructure solution, for over $80M. Now, this service will be renamed Coinbase Cloud. Coinbase states that Bison Trails functions in a non-custodial manner, whereby it does not manage the staked assets of its clients.

Amazon Web Services is a subsidiary of Amazon, and it was launched around two decades ago. AWS generated operating earnings of $13.5 billion in 2202, while the revenues came in at $45.3 billion, equivalent to 63% of the entire revenues from the parent company.

According to Coinbase officials, the exchange aspires to be the Amazon of Cryptocurrencies soon. Coinbase has already made notable gains in its field, including being the first exchange platform to go public through a direct listing.

Coinbase wants to move from reliance on trading fees

Most exchange platforms derive most of their revenues from trading fees. Coinbase is heavily reliant on trading fees for its revenues and income despite going public.

However, the reliance on trading fees can be challenging for an exchange, as it leaves them exposed and vulnerable in case of price swings, which are common in the crypto market.

By launching these new services, Coinbase will generate a new revenue stream as it will offer subscription services. The acquisition of Bison Trails earlier this year was a major turning step for Coinbase towards having a mature and developed financial system.

Besides working on cloud infrastructure, Coinbase is also working on a non-fungible token (NFT) platform that has already seen millions of people join its waitlist.

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