After years of dependence on trading fees, cryptocurrency exchanges are starting to explore subscription models, indicating a potential shift towards more reliable business practices.
Crypto exchanges have evolved beyond mere platforms for buying and selling digital currencies. With trading volumes fluctuating dramatically—often within mere hours—firms like Kraken and Coinbase are adopting subscription models to seek more consistent revenue streams.
Throughout the years, crypto traders have witnessed exchanges introduce a myriad of services, including decentralized platforms, staking solutions, NFT marketplaces, lending features, and peer-to-peer options. However, many of these services still hinge on users making spur-of-the-moment trades, which makes revenue prediction challenging.
Instead of depending solely on transaction fees, exchanges are now delving into methods of generating steadier income while providing a more dependable user experience. The chief marketing officer of a leading exchange highlighted in a recent discussion that these platforms need stable and predictable revenue sources rather than just new streams.
“When all revenue relies on market fluctuations, which can dramatically rise or fall in response to news and events, financial and strategic planning becomes complicated. For example, many exchanges failed during previous ‘crypto winters’ because they expanded staff and marketing budgets too quickly without establishing a financial safety net.”
— Expert Comment
The same expert noted that subscription-based models and services with demand that doesn’t fluctuate with market conditions enable businesses to better plan for the future, invest in long-term projects with reduced risk, and ultimately enhance customer service.
“Our exchange offers subscription options that include more favorable terms, exclusive offers, and access to additional services. For instance, subscribers can conduct AML checks at no cost to verify their own and their counterparties’ addresses for any suspicious activity. Overall, this model benefits both exchanges and clients.”
— Expert Comment
‘Designed to provide real value’
Following suit, Kraken has launched Kraken+, a premium subscription service offering zero-fee trading and enhanced rewards for $4.99 monthly. According to a recent announcement, Kraken+ allows users to make fee-free trades up to $10,000 per month on instant purchases via its main app. Additionally, subscribers can earn up to 4% APR on USDG held on the exchange.
In a recent interview, Kraken’s global head of consumer shared that the introduction of Kraken+ was a “direct response to client feedback.”
“Customers are looking for more utility from the platforms they trust—more ways to engage, save, and grow their holdings, without complicated processes. We developed Kraken+ to reward that trust. For a modest monthly fee, clients receive significant everyday benefits, such as no-fee trading and stablecoin yield—all within a streamlined experience. It’s crafted to offer true value from the outset and continue improving over time.”
— Mark Greenberg
On a technical level, Kraken’s move mirrors Coinbase’s recent offering, Coinbase One, which was launched in 2023. This service provides fee-free trading, priority customer support, and other perks for a significantly higher monthly rate of $29.99. A premium variant, Coinbase One Premium, includes unlimited zero-fee trading, a 25% rebate on Coinbase Advanced spot fees, and enhanced rewards, all priced at $299.99 each month.
Path to profitability
While it may be premature to assess the long-term profitability of these subscription models, Coinbase reported positive momentum earlier this year. In its February shareholder correspondence, the company noted that its subscription and service revenue hit $2.3 billion in 2024, marking a 64% increase year-over-year and quadrupling the figures from the 2021 market boom.
“We saw a rise in Coinbase One subscribers every quarter of 2024 as we enhanced account features and expanded geographic reach, which particularly accelerated with market activity in Q4. Retention is high, as subscribers tend to deepen their involvement with our platform across various products.”
— Coinbase Insight
By the end of 2024, Coinbase reported its subscriber count for Coinbase One had exceeded 600,000, a 50% increase from the beginning of the year, partly driven by a late surge in crypto markets that saw Bitcoin rise above $90,000. Greenberg mentioned that Kraken anticipates “strong uptake” for its new offering and has plans for future expansion.
“Our focus extends beyond the initial offerings; we aim to continually adapt based on client feedback. We aspire to make Kraken+ the most rewarding way to engage with crypto over the long haul.”
— Mark Greenberg
As competition among exchanges intensifies, subscription products may pave a more sustainable path forward. Whether these programs will provide lasting benefits for both users and platforms remains to be seen. Still, Greenberg positions subscriptions as a matter of trust, stating that Kraken’s objective is to cultivate a platform “that users want to stay with, not just for a product, but for the entire journey.”