Coinbase Cloud wanting to be the “AWS of Crypto,” Amasses $30 Billion in Staked Assets
With “a growing number of the world’s largest companies” integrating crypto and needing an infrastructure to operate, Coinbase is clear about its path to dominance.
Cryptocurrency exchange Coinbase has more than $30 billion worth of crypto assets staked on its platform on the 60,000 hosted nodes across over 30 blockchains, including Ethereum 2.0, which is yet to be fully launched as well as Tezos (XTZ) and Cosmos Hub (ATOM), as of November 2021.
“By empowering current and future builders of the crypto-economy,” Coinbase Cloud will “help accelerate the Web3 evolution. This is where the world of software is going, and we’re excited to lead the herd,” said Aaron Henshaw, the division’s head of engineering, in a blog post this week.
Henshaw is the co-founder of non-custodial platform Bison Trial, the hosted infrastructure company acquired by Coinbase in January this year for over $80 million, which is the core of Coinbase Cloud.
While Coinbase Cloud hosts this growing amount of staked crypto, the firm does not custody these assets. Compared to Coinbase’s custodial staking service charging a 25% commission, Coinbase Could take an 8% cut of staking rewards.
Coinbase has been looking to make Coinbase Cloud the Amazon Web Services of cryptocurrency by providing the blockchain infrastructure. AWS is the $1.8 trillion subsidiary of the e-commerce giant.
“We want to be the AWS of crypto,” said Coinbase chief product officer Surojit Chatterjee in an interview.
“We are building this whole Coinbase Cloud suite of products that you can think of as crypto computing services, to help developers build their applications faster.”
The success of Coinbase Cloud means “crypto is gaining mainstream appeal,” said the company noting the overall crypto market cap has reached $3 trillion this year while over $250 billion are locked in decentralized finance (DeFi).
“A growing number of the world’s largest companies are looking to integrate crypto into their applications.”
“Recently, we’ve seen Stripe, Square, Reddit, the NBA, and others introducing crypto into their product lines with no signs of this trend slowing down. They all have one thing in common: a need for infrastructure and tools to operate and participate in the ecosystem.”
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.