Coinbase has formally entered the traditional banking space in the United Kingdom with the introduction of a new GBP savings account, enabling eligible users to earn daily interest on their GBP balances.
The account pays a variable Annual Equivalent Rate (AER) of 3.75% and lets users access their funds instantly, with no minimum deposit or lock-up period. The feature will begin rolling out to selected users on November 11, with wider availability expected in the coming weeks.
Operated through ClearBank, the account is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 ($112,000) the same safeguard offered by traditional UK banks.
Interest is calculated daily and credited once it reaches at least one penny. Users can easily move money between their savings account and their regular GBP balance to spend, withdraw, or buy crypto.
Fully Regulated and Flexible Savings
Unlike crypto lending products, this savings account is fully regulated and functions like a standard bank account. Interest rates may change, particularly if the Bank of England (BoE) adjusts its base rate. Coinbase has said that rate increases may take effect immediately, while decreases are generally communicated in advance, unless tied directly to changes in the BoE’s rates.
This launch is part of Coinbase’s broader effort to offer a platform where users can manage traditional savings alongside crypto assets, along with services like the Coinbase Card and stablecoin support. Coinbase UK CEO Keith Grose stated the initiative aims to make Coinbase “the number one financial app in the UK,” blending crypto and fiat services under one roof.
Regulatory Milestones and Challenges
Aside from growth, Coinbase has been actively trying to navigate regulatory hurdles. In February, Coinbase received Virtual Asset Service Provider (VASP) registration from the UK’s Financial Conduct Authority (FCA), clearing the way to offer crypto trading and custody services across the country.
However, the firm recently faced significant scrutiny on the continent. The Central Bank of Ireland (CBI) fined Coinbase Europe €21.5 million (approximately $24 million) over deficiencies in its transaction monitoring system. There were technical errors in its transaction monitoring system, which left some crypto transactions, valued at over €176 billion, partially unmonitored between 2021 and 2022.
The company quickly fixed the issue and rechecked the affected transactions. It also filed the necessary suspicious activity reports for around 2,700 transactions worth €13 million, fully cooperating with regulators.
Public Campaigns and Critiques
Coinbase has also been vocal about economic issues in the UK, recently releasing an ad titled “Everything is Fine” in what was a satirical attempt to address struggles faced by communities and point out the gap between official economic narratives and reality.
When UK TV networks banned the ad, CEO Brian Armstrong took to X to defend it as a call for reform. In the process, the campaign sparked conversation in the crypto community about pushback from traditional financial institutions.