How do crypto exchanges make money?

Crypto exchanges make money in two broad ways. They charge for trading, through fees and the spread between buying and selling prices. And they earn from the money and coins customers leave with them, through interest, stablecoin income and staking commissions. Coinbase, a listed US company, publishes the details.

How do crypto exchanges make money from trading fees?

Trading is the core business. An exchange typically charges a percentage of each trade. On order-book platforms the rate often depends on whether an order adds liquidity or takes it, the "maker-taker" model explained in what are crypto fees.

Kraken's published schedule shows the range. On its Pro platform, the lowest-volume tier pays 0.40% as a maker and 0.80% as a taker. Instant buys in its app carry a 1% fee, plus a spread. Rates fall as monthly trading volume rises for higher-volume traders.

Coinbase's 10-K says simple consumer trades carry higher fees than its advanced trading platform, and institutional clients get volume-based pricing.

What is the spread, and how does it earn revenue?

The spread is the gap between the price at which a platform will buy and the price at which it will sell. On instant-buy screens, the exchange quotes its own price with a margin built in. Coinbase says its simple buy and sell orders include a spread that can vary between similar trades and is shown on the preview screen. Kraken says its spread depends on volatility, asset, order size and account activity.

How do exchanges earn stablecoin and interest revenue?

Customer balances earn money too. Coinbase's 10-K lists several sources:

• Stablecoin revenue. Under an agreement with Circle, the issuer of USDC, Coinbase is paid for helping grow the coin and shares in the income from the reserves backing it. Those reserves earn interest, so this revenue rises with USDC balances and falls when interest rates drop.
• Interest on customer cash. Coinbase earns interest on customer funds held at banks.
• Staking commissions. It keeps a fixed percentage of the staking rewards earned on customers' coins.
• Subscriptions. Its Coinbase One membership charges a recurring fee.

How much of crypto exchange revenue comes from each source?

Coinbase's fourth quarter 2025 shareholder letter gives the breakdown for the full year 2025:

• Total revenue: $7.18 billion.
• Transaction revenue: $4.06 billion, of which $3.32 billion came from consumers and $480 million from institutions.
• Subscription and services: $2.83 billion, including $1.35 billion in stablecoin revenue and $677 million in staking (blockchain) rewards.
• Interest and finance fee income: $247 million.

In the fourth quarter, Coinbase said stablecoin revenue rose as average USDC held in its products reached a record $17.8 billion, partly offset by lower interest rates after rate cuts.

Trading revenue depends on how much customers trade, while interest and stablecoin income depend on balances and interest rates. Coinbase's 10-K says stablecoin revenue has become a larger share of its subscription and services revenue. For how exchanges work more broadly, see what is a crypto exchange, and for the coin behind much of the reserve income, see USDT vs USDC.