Coinbase (business)
- Not to be confused with the coinbase parameter.
| Industry | eWallet, exchange |
| Founded | June 20, 2012 |
| Headquarters | San Francisco, CA, United States |
| Founder(s) | Brian Armstrong, Fred Ehrsam |
| Website | coinbase.com |
Coinbase is a hosted web-based eWallet used for sending, receiving, and storing bitcoin. Users can also connect a U.S. based bank account to buy and sell cryptocurrency via bank transfer.
The service aims to be the easiest way to get started with digital currency, modeled to provide an experience familiar to those who are comfortable using PayPal.
Transactions
Buy Bitcoin
Coinbase allows users to purchase a digital currency by directly transferring money from a bank account. Although the exchange rate is locked in at the time of order placement, the digital currency is not released for four business days. Verified users are allowed to create instant-purchases, which credits the digital currency to their account before the bank transfer clears.
Linking a bank account can be done using Instant Account Verification (by providing your bank account credentials) or through a Challenge Deposit method which takes 2-3 business days to complete. The bank verification process is very similar to the relevant procedure at PayPal.
Sell Bitcoin
Proceeds from selling a digital currency are sent as a direct ACH transfer to a linked bank account. The price is locked upon executing the sell and the funds arrive in the bank account in 2-3 business days.
Send Money
This feature provides the ability to send a digital currency to both email and digital currency wallet addresses. The amount of cryptocurrency sent can be determined by entering a value in either USD (converted to a digital currency based on the current exchange rate) or the digital currency. If digital currency is sent to an email address not currently registered with Coinbase, an account will automatically be created and a message will be sent to that email address prompting the user to verify the account and claim the digital currency.
Request Money
This feature provides the ability to request funds (denominated in either USD or a digital currency) through an invoice which is sent by email.
Exchange
On January 26, 2015 Coinbase announced via a blog post [1] they were launching a United States based and US regulated bitcoin exchange. The exchange located at https://exchange.coinbase.com/ allows users from select US states and territories begin trading using an order book on the Coinbase website. Eventually, this website was merged into the main coinbase.com domain, allowing all customers to use that website for trading.
Commerce Services
Originally, Coinbase offered a suite of “Merchant Tools” for accepting bitcoin payments—things like payment-buttons, hosted payment pages, callbacks/webhooks for payment notifications, and daily payout transfers to linked bank accounts. These tools enabled merchants to integrate bitcoin payments into a website with minimal code.
Over time, Coinbase retired the legacy Merchant Tools and shifted focus to a newer platform called Coinbase Commerce, and more recently to a broader product called Coinbase Payments (and “Commerce”) to serve merchants and platforms at scale.
In May 2018, Coinbase deprecated its legacy “Merchant Tools” (payment buttons, hosted pages, callbacks, bank payouts) and migrated merchants to Coinbase Commerce; later, the old tools were disabled with refunds-only access until the final cutoff.[2][3][4]
Today, Coinbase offers Coinbase Commerce (self-managed or managed), which accepts multiple cryptocurrencies with on-chain checkout, webhooks/API, and optional auto-conversion/settlement features,[5][6] and Coinbase Payments (launched June 18, 2025), a stablecoin (USDC) payments stack built for commerce platforms and PSPs, promising 24/7 global settlement and Shopify connectivity (on Base).[7][8]
Coinbase Commerce supports various coins such as ApeCoin, Bitcoin, Bitcoin Cash, DAI, Dogecoin, Ethereum, Litecoin, SHIBA INU, Tether, and USD Coin; Polygon and Base networks are supported; assets include MATIC, WETH, and USDC (native on Base).[9] It charges a 1% fee on crypto payments, collected in the settlement currency.[10] It also features on-chain checkout with webhooks, charge creation via API, and plugins for platforms such as WooCommerce.[11][12]
Coinbase Payments enables merchants and platforms to accept USDC payments 24/7 around the world, with a modular architecture: checkout layer, merchant-API layer (“Ecommerce Engine”), and smart-contract on-chain execution (“Commerce Payments Protocol”).
Legacy Merchant Tools supported only bitcoin-era coins; Commerce supports multiple assets as listed below. This table is illustrative, not exhaustive.
| Currency | Notes / Highlights |
|---|---|
| BTC (Bitcoin) | Major asset supported via Commerce checkout. |
| ETH (Ethereum) | Supported on mainnet; Commerce API/checkout supported. |
| USDC (USD Coin) | Common settlement currency for merchants; also a primary rail in Coinbase Payments (Base).> |
| USDT (Tether) | Listed among accepted currencies in Commerce FAQ. |
| DAI | Stablecoin accepted by Commerce. |
| LTC (Litecoin) | Accepted via Commerce checkout. |
| BCH (Bitcoin Cash) | Accepted via Commerce checkout. |
| DOGE (Dogecoin) | Accepted via Commerce checkout. |
| APE (ApeCoin) | Accepted via Commerce checkout. |
| SHIB (Shiba Inu) | Accepted via Commerce checkout. |
| MATIC (Polygon) | Polygon assets supported; Commerce FAQ calls out MATIC, USDC, and WETH on Polygon. |
Coinbase no longer promotes the legacy payment-button / hosted-page model as its primary merchant offering; the emphasis is on Commerce/Payments, scalability, stablecoin support and platform integrations.
Fees
There are no fees for sending, receiving, or storing bitcoin.
The fee for buying or selling bitcoin with a bank transfer is a fixed 1% + $0.15. This fee is waived on automatic sell orders made using their merchant instant-exchange functionality.
History
The service was announced on June 29, 2012 and received seed funding from Paul Graham after going through the startup incubator Y-Combinator[13].
On October 26, 2012, the service launched its method to buy and sell bitcoins using a linked bank account[14].
On December 5, 2012, Coinbase launched its Merchant Tools[15].
On May 7, 2013, Coinbase announced that it had received five million dollars in funding led by the venture capital firm Union Square Ventures. It was the largest funding round to date for a bitcoin company[16].
On July 11, 2013, Coinbase launched instant buys for fully verified users[17].
On December 12, 2013, Coinbase announced Series B funding of $25 million dollars led by the venture capital firm Andreessen Horowitz. It is the largest round of funding received by a bitcoin company[18].
On February 27, 2014, Coinbase announced that 1 Million consumer wallet accounts have been opened on their platform [19].
On May 7, 2014, Coinbase announced that they acquired the content-sharing platform Kippt. [20]
On August 18, 2014, Coinbase announced that they acquired the block explorer company Blockr.io. [21]
On January 26, 2015, Coinbase launched Coinbase Exchange - First Regulated Bitcoin Exchange in the U.S. [22] It continued to expand its portfolio over the years, adding trading support for dozens of altcoins and exploring the possibility of listing others.[23]
In May 2020, amid the COVID-19 pandemic, Coinbase announced it was shifting to a remote-first working model and would no longer maintain a formal headquarters.[24]
On April 14 2021, it became a public company on the Nasdaq via a direct listing.[25][26]
In January 2023, Coinbase agreed to a US$50 million penalty to the New York State Department of Financial Services (NYDFS) for alleged shortcomings in its anti-money-laundering and transaction monitoring systems, and committed another US$50 million investment in its compliance programme.[27][28]
In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging it operated as an unregistered exchange and offered unregistered staking services.[29]
On February 27, 2025, the SEC formally announced the dismissal of its lawsuit against Coinbase, ending the dispute.[30]
In May 2025, Coinbase was added to the S&P 500 index, becoming the first major cryptocurrency exchange included in the benchmark.[31]
See Also
External Links
- Coinbase.com website
References
- ↑ Coinbase Launches First Regulated Bitcoin Exchange in the U.S.
- ↑ "Upgrading the Merchant Experience". Coinbase Commerce (Medium). March 5 2018. https://medium.com/@coinbasecommerce/upgrading-the-merchant-experience-d97679274c71.
- ↑ "Product Update — Simplifying credential management". Coinbase Commerce (Medium). May 24 2018. https://medium.com/@coinbasecommerce/product-update-simplifying-credential-management-408ec58d17e7.
- ↑ "Update: Deprecating Coinbase Merchant Tools". Coinbase Commerce (Medium). May 1 2018. https://medium.com/@coinbasecommerce/update-deprecating-coinbase-merchant-tools-3e6d9d9357df.
- ↑ "Coinbase Commerce — A new standard in global crypto payments". Coinbase. https://www.coinbase.com/commerce.
- ↑ "Accepting Crypto Payments with Commerce API". Coinbase Developer Docs. https://docs.cdp.coinbase.com/commerce/accepting-payment/accepting-payment.
- ↑ "Powering the future of ecommerce: Introducing Coinbase Payments". Coinbase Blog. June 18 2025. https://www.coinbase.com/blog/powering-the-future-of-ecommerce-introducing-coinbase-payments.
- ↑ "Coinbase and Shopify bring USDC payments on Base to millions of merchants". Coinbase Blog. June 12 2025. https://www.coinbase.com/blog/coinbase-and-shopify-bring-usdc-payments-on-base-to-millions-of-merchants-worldwide.
- ↑ "Coinbase Commerce — FAQs (Which cryptocurrencies can I accept?)". Coinbase. https://www.coinbase.com/commerce/faq.
- ↑ "Coinbase Commerce fees". Coinbase Help Center. https://help.coinbase.com/en/commerce/getting-started/fees.
- ↑ "Accepting Crypto Payments with Commerce API". Coinbase Developer Docs. https://docs.cdp.coinbase.com/commerce/accepting-payment/accepting-payment.
- ↑ "Integrating Commerce and WooCommerce". Coinbase Developer Docs. https://docs.cdp.coinbase.com/commerce/integrations/woocommerce.
- ↑ Coinbase - Funded by Paul Graham
- ↑ You Can Now Buy And Sell Bitcoin By Connecting Any U.S. Bank Account
- ↑ How To Accept Bitcoin On Your Website
- ↑ Coinbase Nabs $5M in Biggest Funding for Bitcoin Startup
- ↑ Instant Bitcoin Purchases at Coinbase
- ↑ Bitcoin's Biggest Investment
- ↑ 1 Million Consumer Wallets
- ↑ Coinbase Boosts Team with Acquisition of Kippt Developers
- ↑ Coinbase Acquires Blockchain Explorer Blockr.io
- ↑ Coinbase Is Opening The First Regulated Bitcoin Exchange In The U.S.
- ↑ "Coinbase Continues to Explore Support for New Digital Assets". Coinbase Blog. December 7 2018. https://www.coinbase.com/blog/dec-7-coinbase-continues-to-explore-support-for-new-digital-assets.
- ↑ "Coinbase Is a Remote-First Company". Coinbase Blog. May 21 2020. https://blog.coinbase.com/coinbase-is-a-remote-first-company-af1fd8d5cfc7.
- ↑ "Coinbase Announces Effectiveness of Registration Statement and Anticipated Listing Date". Coinbase Investor Relations. April 1 2021. https://investor.coinbase.com/news/news-details/2021/Coinbase-Announces-Effectiveness-of-Registration-Statement-and-Anticipated-Listing-Date-of-its-Class-A-Common-Stock-on-the-Nasdaq-Global-Select-Market/default.aspx.
- ↑ "Coinbase valued at $86 billion in choppy Nasdaq debut". Reuters. April 14 2021. https://www.reuters.com/technology/coinbase-heads-89-bln-valuation-nasdaq-debut-2021-04-14/.
- ↑ "Coinbase and NYDFS Reach Agreement to Resolve Compliance Investigation". Coinbase Blog. January 4 2023. https://www.coinbase.com/blog/Coinbase-and-NYDFS-reach-agreement-to-resolve-compliance-investigation.
- ↑ "Coinbase to Pay $100 Million in Settlement With New York Regulators". Reuters. January 4 2023. https://www.reuters.com/legal/coinbase-settles-with-new-york-regulators-100-mln-report-2023-01-04/.
- ↑ "U.S. SEC Sues Crypto Exchange Coinbase". Reuters. June 6 2023. https://www.reuters.com/technology/us-sec-sues-coinbase-crypto-exchange-2023-06-06/.
- ↑ "SEC Announces Dismissal of Civil Enforcement Action Against Coinbase". U.S. Securities and Exchange Commission. February 27 2025. https://www.sec.gov/newsroom/press-releases/2025-47.
- ↑ "Coinbase Global Set to Join S&P 500". S&P Dow Jones Indices. May 12 2025. https://press.spglobal.com/2025-05-12-Coinbase-Global-Set-to-Join-S-P-500/.