Coinbase, a prominent cryptocurrency exchange, has officially launched a savings account product for its users in the United Kingdom. This new Coinbase Savings Account, which is powered by Clearbank, enables eligible UK customers to earn a 3.75% AER variable interest rate. The interest is paid daily on GBP balances, with the offering commencing on November 11.
According to Coinbase, the account provides instant deposits and withdrawals. It features no minimum balance requirement and no lockup period, offering users a level of flexibility comparable to traditional savings accounts.
Savings Protected by FSCS
Coinbase's savings accounts will include Financial Services Compensation Scheme (FSCS) protection. This ensures that users' GBP balances are covered up to £85,000 in the event of a provider failure. This safeguard is consistent with the deposit protection offered by mainstream UK banks, positioning Coinbase as a significant player in the hybrid finance sector that merges traditional banking services with cryptocurrency offerings.
Keith Grose, CEO of Coinbase UK, shared his perspective on the launch:
“The launch of the Coinbase Savings Account highlights our commitment to offering Brits the best financial experience in one platform. We are focused on building products tailored to local needs and aim to become the UK’s number one financial app.”
Bridging Traditional Finance and Crypto
This initiative by Coinbase further expands its UK ecosystem, which is already enhanced by the Coinbase Card. The card allows users to spend funds from their crypto, stablecoin, or fiat balances with merchants. With the introduction of the new savings feature, Coinbase is strengthening its goal of establishing a unified financial platform that integrates the advantages of both crypto and traditional banking.
Mitesh Savjani, Product and Growth Lead at Coinbase UK, elaborated on the significance of this development:
“Today, Brits don’t have one place that offers the best of crypto and traditional finance. Supporting a high-interest savings account with instant access alongside our trusted exchange is a step toward modernizing the UK’s financial system.”
While Coinbase's 3.75% interest rate surpasses the rates offered by many traditional banks, it is slightly lower than those provided by some fintech competitors. Nevertheless, its seamless integration with digital assets and the provision of daily interest payments make it an attractive choice for users seeking a hybrid financial solution.
Part of Coinbase’s UK Expansion Strategy
Coinbase has identified the UK as its largest international market and a crucial element of its global expansion strategy. Earlier this year, the exchange obtained Virtual Asset Service Provider (VASP) registration from the Financial Conduct Authority (FCA), marking it as the largest cryptocurrency exchange officially registered in the country.
However, Coinbase's operations in the UK have encountered regulatory challenges. In 2024, its local subsidiary received a £4.5 million fine from the FCA for repeated breaches of conditions related to high-risk customer services. More recently, the Central Bank of Ireland imposed a €24.7 million fine on Coinbase Europe for compliance issues concerning anti-money laundering (AML) and counter-terrorist financing between 2021 and 2025.
Despite these obstacles, Coinbase remains dedicated to reinforcing its presence in Europe. The company plans to extend access to its savings account feature to all UK users in the coming weeks.