Coinbase has launched its new UK savings product, announcing that eligible users would earn 3.75% AER variable interest on GBP deposits fully protected by the FSCS. The firm revealed that accounts powered by Clearbank will be made available to selected users from November 11 in a staggered manner.
Daily interest will be paid on balances through the Coinbase Savings Account with no minimum deposit or lockup period, thus allowing deposits and withdrawals to be instant. FSCS protection, thus, provides the same level of security as a traditional bank by ensuring that deposits of up to £85,000 ($112,000) are safe if the provider goes under.
In the announcement, Coinbase claims that it is the first crypto-native exchange to introduce a regulated savings account in the UK and, thus, it is firmly committed to linking traditional banking with digital assets.
“The introduction of the Coinbase Savings Account is a clear demonstration of our mission to provide British customers with the best financial offerings,” commented Keith Grose, CEO of Coinbase UK. “By addressing local financial pain points, we intend to turn Coinbase into the UK’s leading financial app.”
The 3.75% interest rate offered by Coinbase is higher than that of most mainstream banks but slightly lower than that of a few top-tier fintech savings accounts. The project is in line with the Coinbase Card that allows users to spend directly from their crypto, stablecoin, or fiat balances, thus combining the traditional finance experience with the digital assets one.
Mitesh Savjani, Product and Growth Lead at Coinbase UK, said launching the product is like taking a giant step in the journey to the modernization of the UK financial system. “There is no single platform that currently offers the best of both crypto and traditional finance. This savings account does that,” he concluded.
The UK continues to be the most significant market for Coinbase from outside the US and a major part of its growth plan. This launch is a follow-up to the exchange’s registration as a Virtual Asset Service Provider (VASP) with the Financial Conduct Authority (FCA) in February, thereby making it the largest crypto exchange registered in the UK.
However, Coinbase’s UK operations had to deal with some obstacles imposed by the regulatory authorities. The FCA fined Coinbase UK $4.5 million in 2024 for compliance failures related to the management of high-risk customers, and the Central Bank of Ireland gave a $24.7 million penalty earlier this year due to the company’s shortfalls in anti-money laundering and monitoring.
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