Coinbase — the US-based digital asset exchange and custodial giant — has surpassed 25 million users, adding 5 million over the course of the last 6 months. Put by Jameson Lopp, there are now not enough bitcoins for everyone with a Coinbase account to own one.
Coinbase is now adding roughly 25,000 users per day as it continues its expansion following its achievement of becoming the first billion-dollar company in the cryptocurrency space.
Despite Coinbase’s polarizing existence among the cryptocurrency community, it has made significant headway in onboarding new crypto investors and providing user-friendly tools in an industry with a high barrier to entry. Coinbase now rivals both Charles Schwab and Fidelity’s brokerage arm in the number of users.
The numbers back Coinbase’s dominance as well:
- Their customer base has grown from ~5 million to ~25 million in 2 years.
- Coinbase raised $500 million at an estimated valuation of $8 billion.
- Coinbase raked in more than $1 billion in revenue in 2017.
- LinkedIn ranked it #3 in most sought after startups in the U.S.
- Over $150 billion has been traded on the platform.
Coinbase also has superior network effects to many of its competitors in the fiat-to-crypto field. Moreover, their tailored approach to providing institutional services also gives them a leg up on the competition.
Coinbase CEO, Brian Armstrong, released a quarterly review directed towards employees of the company’s accomplishments for Q3 through the official Coinbase blog on Tuesday. The update follows on the heels of an extensive piece by Fortune magazine last week focusing on Coinbase and their ambitions in the developing digital asset landscape.
The blog update highlights how Coinbase has recently been venturing into new spaces and expanding its services offerings to become a sustainable player in the industry. Coinbase recently acquired the Distributed Systems startup as part of their Login With Coinbase initiative and invested in several startups as part of Coinbase Ventures, including Horizon Games, Coinmine, and Public Market.
The recent developments from Coinbase also involve their new asset listing process which drew mainstream attention last week. Coinbase currently only lists Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ethereum Classic (just added) and their previous asset listing process was a relatively strict protocol. Their new process is focused on rapidly listing more tokens that are compliant with the local law on a jurisdiction-to-jurisdiction basis.
The move to expedite the asset listing process correlates with Coinbase’s broader goal to become the premier fiat-to-crypto bridge for investors in the industry. Their model is clearly working — as demonstrated by their user numbers — and the rapid onset of new assets on their platform and other fiat on-ramps has significant anticipation behind it.
The Fortune piece also outlines Coinbase’s ambitions to become “too big to fail.” Considering that “too big to fail” is often associated with the excuse for bailing out banks in the 2008 Financial Crisis, the phrasing is a poor choice, but it does represent Coinbase’s goal of competing with legacy financial institutions and competing exchanges like Gemini for becoming the standard for institutional-level digital asset trading.