“We want to be the AWS of crypto,” says Coinbase executive

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Amazon Web Services (AWS) being one of the most popular cloud service providers on the planet, it’s no surprise that Coinbase, a US-based cryptocurrency exchange, is trying to capitalize on its success by developing its own cloud infrastructure solution, Coinbase Cloud.

“We want to be the AWS of crypto,” Coinbase product manager Surojit Chatterjee said in an exclusive interview with Forbes. “We’re building this whole suite of Coinbase Cloud products that you can think of as crypto-computing services to help developers build their apps faster.”

Prior to becoming Coinbase Cloud, the service was called Bison Trails, a cloud-based staking infrastructure solution that Coinbase purchased earlier this year for an undisclosed amount that was rumored to be over $ 80 million. dollars. According to Coinbase, Bison Trails is a non-custodial platform, which means it does not manage clients’ staked assets.

Amazon Web Services (AWS) was once a secondary consideration for Amazon in Seattle, eclipsed by Amazon. Nonetheless, the Amazon subsidiary that started out nearly 20 years ago is the company’s main profit driver today. AWS made $ 13.5 billion in annual operating profits in 2020 on a revenue base of $ 45.3 billion, or 63% of its parent company’s total.

Related: NFTs Could Be ‘As Big Or Bigger’ Than All Cryptos On Coinbase, CEO Says

Coinbase officials have suggested they need to become the “Amazon of Cryptocurrencies” as soon as possible. or Because the majority of its accolades are not only aimed at being the first major digital currency company to go public, but also doing so by achieving the largest direct listing in history, its revenue stream is too dependent on fees. transaction.

This is often the case with positions that are dominated by the concentration of income from a single category. Facebook, for example, and Google depend almost entirely on advertising to make money. Therefore, their campaign articles usually have this degree of income concentration.

However, due to their heavy reliance on the market and overall transaction volumes, Coinbase and other exchanges can be very vulnerable. Since transaction volumes are closely related to price fluctuations, such reliance can be a major drawback for crypto platforms like Coinbase or any other exchange.

Coinbase seeks to increase trading income by providing subscription services that are more resilient to market fluctuations to mitigate this risk. For example, it provides institutional custody services, staking opportunities, a learning portal that offers users crypto as a reward, an online payment system, and the ability to issue Visa debit cards to customers. He is also testing a subscription plan that would give clients a monthly trading allowance for a fixed price.

The acquisition of Bison Trails, according to Chatterjee, was a critical step in Coinbase’s transition to a more mature financial system. The platform supports crypto custodians, funds, decentralized applications, and token holders. Some of his clients are Andreessen Horowitz (a16z), the New York-based financial technology company Current and Turner Sports.

As of November 2021, Coinbase Cloud had $ 30 billion in crypto assets at stake on its platform. Coinbase, one of the most popular cryptocurrency platforms, has over 73 million genuine customers, 10,000 organizations, and 185,000 ecosystem partners in over 100 countries. According to Coinbase, since its inception, it has processed transactions worth over $ 700 billion.

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