Coinbase CEO Brian Armstrong reviewed the platform’s transaction fees on the company’s Nasdaq Stock List.
In an interview with CNBC Squawk Box on Wednesday, Armstrong discussed the public’s concerns about Coinbase’s huge transaction fee revenue. As previously reported, nearly 96% of Coinbase’s total revenue in 2020 came from transaction fees charged to users.
When asked about the potential impact of increased competition on Coinbase transaction fees, Armstrong said the platform could see some long-term tax cuts:
“We haven’t seen any contraction in margin yet, and I really don’t expect to see any contraction in the short to medium term. In the long term, yes, I believe commission pressure can occur, just like any other asset class.”
Armstrong said the majority of cryptocurrency transaction fees come from storage fees “already included in the transaction fees.”
The CEO said Coinbase plans to gradually shift its focus to other revenue streams through products such as debit and betting cards, Coinbase Earn’s educational program, and custody activities for institutional clients.
“We’ve started investing in income streams that are starting to generate these green revenues […] They provide more predictable income streams, and I think in five or ten years we’ll see they can reach 50% or – said Armstrong.
As Cointelegraph previously reported, Coinbase professional platform Coinbase Pro completed a major tax structure update in 2019, which increased some manufacturers’ fees to 233%. After the upgrade, Coinbase generated $ 1.1 billion in direct revenue in 2020, well over $ 482 million in 2019.