Coinbase’s Ambition: Towards a Cryptocurrency Empire
Coinbase has evolved from a simple trading platform to building a full stack cryptocurrency ecosystem through the Base Chain and The Base App.
The company has expanded its influence in the cryptocurrency industry by acquiring multiple cryptocurrency startups and a strong Coinbase alumni network, similar to Google’s model.
Coinbase’s strategic initiatives are clearly helping to promote the popularity of the cryptocurrency industry. However, this has also created new centralized structures and brought challenges in balancing decentralized values.
- Coinbase: Ambition to surpass trading platforms
Coinbase became the first cryptocurrency trading platform to go public on a securities trading platform in April 2021, listing directly on NASDAQ. This event is not only an IPO of a single company, but also symbolizes a turning point for the cryptocurrency industry to enter the mainstream financial system.
The company name ‘Coinbase’ also has symbolic meaning, derived from Bitcoin’s’ Coinbase Transaction ‘, which is the first transaction recorded when a new block is created, representing the moment when cryptocurrency enters the world. The company name reflects its firm commitment to becoming the starting point of the cryptocurrency ecosystem.
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BNB Smart Chain(BEP20)Address:0xb01e8aa1b334a49b224e4ba9f84eec1e58bd5087
Tron（TRC20）Address:TS2SWtDXFmCnCV1EdFMN3A4JQ5uYWzsqTk
Ethereum(ERC20)Address:0xb01e8aa1b334a49b224e4ba9f84eec1e58bd5087
Solana Address:3L1Hc5K5QMhtEPfCen71VMAJQf4vk63DuT8S1mUD8URB
The symbolic significance of Coinbase is not limited to naming. Based on its core trading platform business, the company expands its business scope and builds a huge ecosystem. The company has launched a Layer 2 blockchain base based on Ethereum and launched The Base App (TBA) during the “A New Day One” event. These developments indicate that Coinbase is building a cryptocurrency full stack ecosystem that covers infrastructure to applications.
- Encryption full stack: trading platform, infrastructure, and consumer applications
2.1. Trading platform: Coinbase’s reliable cash cow
The core business of Coinbase is undoubtedly its trading platform business, providing cryptocurrency trading services to various users from individuals to institutions, and generating revenue through transaction fees. As of 2024, transaction fee income accounts for approximately 60% of total revenue, with a scale of approximately $4 billion. The relatively stable transaction fee income has laid the foundation for Coinbase’s new business expansion, similar to Amazon’s expansion of multiple businesses using AWS as a cash cow.
In addition, the value of trading platforms is also reflected in their strategic scalability. As the core gateway connecting fiat currency and cryptocurrency, the trading platform provides Coinbase with a vast user base and transaction data. This position makes it a strategic hub that naturally attracts users into a wider ecosystem. The trading platform provides Coinbase with financial stability and strategic scalability, serving as the core foundation for the development of the ecosystem.
2.2. Base chain: the transition from off chain to on chain
The Base Chain is a Layer 2 blockchain built directly by Coinbase based on Ethereum. Through this chain, Coinbase is able to expand from its trading platform business to the on chain domain.
This expansion is necessary for the structural characteristics of the cryptocurrency ecosystem. The cryptocurrency ecosystem is divided into off chain and on chain environments. The trading platform mainly provides trading services between fiat currency and cryptocurrency in off chain environments.
However, the practical application of cryptocurrencies occurs in off chain environments, such as cryptocurrency based mortgage loans and governance participation. For example, after purchasing cryptocurrency on Coinbase, users transfer it to the chain to participate in specific DeFi protocols. This means that Coinbase faces structural limitations and needs to send users to other ecosystems.
The base chain solves these limitations. Now, users can stay in the Coinbase ecosystem even if they purchase cryptocurrency and withdraw it. Just as Apple controls hardware and software, Coinbase can now manage the entire user journey from trading platforms to infrastructure, which is of great significance.
2.3. TBA: Complete the final puzzle of the crypto ecosystem
In July 2025, Coinbase announced the launch of its on chain super application TBA, moving towards a bigger vision. Its strategy is not limited to locking in users through the trading platform, but also providing users with an actual usable application layer through the Base infrastructure. Although there are numerous decentralized applications (dApps) based on Base, they are scattered and difficult to find in one place. Even if the Base Chain has excellent performance or low cost, its significance is difficult to reflect if ordinary users cannot easily access it.
TBA integrates the core elements of the cryptocurrency ecosystem – trading platforms, infrastructure, and applications – into one platform, providing a seamless user experience. Users can make cryptocurrency payments and transfers, generate income through Farcaster based social services, and immediately use it for online or offline payments, bringing a brand new on chain experience. Multiple services collaborate to create strong synergies and build a massive on chain economic ecosystem. This greatly reduces the threshold for participating in the on chain economy and completes the final piece of the puzzle for Coinbase to build a massive ecosystem.
- Coinbase builds a crypto empire
Coinbase is no longer just a trading platform. The company has built blockchain infrastructure and consumer applications on the basis of the trading platform, evolving into a vast empire covering the entire cryptocurrency ecosystem. In addition, through aggressive merger and acquisition strategies, Coinbase has further expanded into a wider range of fields. For example, the company acquired token management platform LiquiFi, zero knowledge proof technology company Iron Fish, Web3 advertising platform Spindl, and encrypted derivatives trading platform Deribit, extending its reach to various fields of the Web3 industry.
These actions indicate that Coinbase is attempting to control all touchpoints related to cryptocurrency like an aircraft carrier. In addition, the relationship with Circle, the issuer of USDC stablecoins, is more prominent. Coinbase is a major shareholder of Circle and receives a portion of USDC interest income, surpassing simple equity investments. If Circle goes bankrupt or fails to fulfill its income distribution obligations, some USDC related rights will be transferred to Coinbase. This shows that Coinbase almost controls the core infrastructure of the cryptocurrency ecosystem.
Coinbase’s expansion strategy is not only achieved through mergers and acquisitions. Another core strategy is to spread influence in the cryptocurrency industry through Coinbase alumni, similar to the operational model of PayPal Mafia. The company has invested in over 40 Web3 startups founded by former Coinbase employees and established partnerships to continuously build a close collaborative network. Famous cases include Polychain Capital founded by Olaf Carlson Wee, the first employee of Coinbase, as well as major Web3 projects such as dYdX, Farcaster, Zora, and B3 founded by Coinbase alumni.
We still consider Coinbase as a trading platform, but its actual operation is more like Google in the Web2 era. Just as Google started with search and dominated the entire digital ecosystem such as advertising, cloud, and mobile, Coinbase also started with its trading platform business and built a huge empire covering all areas of the cryptocurrency ecosystem.
- Cryptocurrency market centered around trading platforms: is it good or bad?
Coinbase is building a massive empire. The strategic measures from the trading platform to the Base chain and then to TBA are clearly well thought out. However, we need to consider its positioning in these radical strategies.
Cryptocurrencies advocate decentralization, but now they are returning to centralization while pursuing convenience. Users voluntarily enter the Coinbase ecosystem and have no reason to leave. This is essentially reshaping a structure similar to traditional finance.
This change is not entirely negative. Integrated platforms like TBA bring practical benefits to users. Users can access all services in a single application without complex wallet connections, frequent platform switching, or worrying about high gas fees. The process seamlessly connects from generating income through social activities to actual payments. The Coinbase model clearly contributes to the popularization of cryptocurrencies.
However, we cannot ignore a key point. Cryptocurrency aims to achieve decentralization, but now it has formed a new centralized structure while pursuing convenience. Users voluntarily stay in the Coinbase ecosystem and cannot find a reason to leave. This is not fundamentally different from the traditional centralized financial structure we are trying to break away from.
The market has chosen convenience, and reversing this trend seems difficult. The important thing now is to find a balance between the convenience of centralization and the spirit of decentralization. The real challenge lies in building an ecosystem that protects user choices through healthy competition and continuous innovation, while preserving the core values of cryptocurrency.
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BNB Smart Chain(BEP20)Address:0xb01e8aa1b334a49b224e4ba9f84eec1e58bd5087
Tron（TRC20）Address:TS2SWtDXFmCnCV1EdFMN3A4JQ5uYWzsqTk
Ethereum(ERC20)Address:0xb01e8aa1b334a49b224e4ba9f84eec1e58bd5087
Solana Address:3L1Hc5K5QMhtEPfCen71VMAJQf4vk63DuT8S1mUD8URB