Coinbase Launches First Regulated Savings Product in UK, Offering 3.75% AER
Regulated Savings Product Debut
Coinbase is introducing savings accounts for customers in the United Kingdom, offering a 3.75% annual equivalent rate (AER) and protection under the country’s Financial Services Compensation Scheme (FSCS). This move positions Coinbase as the first crypto exchange to launch a regulated savings product in the UK. The savings account, powered by ClearBank, will initially be available to selected users starting November 11, followed by a phased rollout to all eligible customers. The product allows for instant deposits and withdrawals with no lockup period or minimum balance. Interest will be paid daily and calculated on customers’ GBP holdings. Balances are protected up to £85,000 (approximately $112,000) through the FSCS, which safeguards deposits in the event the provider fails, mirroring the protection offered by traditional UK banks. The combination of regulated backing and digital convenience signifies a new phase in Coinbase’s expansion into mainstream financial services.
Coinbase’s entry into regulated savings could position it as a direct competitor to UK neobanks and high-yield fintechs, while simultaneously strengthening its local regulatory credentials.
Coinbase’s Push Into Everyday Finance
“The launch of the Coinbase Savings Account highlights Coinbase's focus on offering Brits the best financial experience as an exchange for everything,” stated Keith Grose, Coinbase UK CEO. “We are building products tailored to local needs that solve real pain points for our customers and are on the path to making Coinbase the UK’s number one financial app.” Mitesh Savjani, the firm’s UK product and growth lead, added that the savings product complements Coinbase’s existing card and crypto services. “Supporting a high-interest and instant-access account alongside the most trusted crypto exchange is a step toward updating the financial system for the UK,” he remarked. The account launch follows a year of significant product development by Coinbase in its key international market. The company’s UK operations already offer the Coinbase Card, which allows users to spend from crypto, stablecoin, or fiat balances at merchants, and recently expanded access to over 260 listed digital assets. With a variable rate of 3.75%, Coinbase’s savings account is competitive compared to most high-street banks but falls slightly below some fintech offerings. Market leaders such as Monzo and Chase UK currently offer rates between 4% and 5% on limited balances. Coinbase's primary advantage lies in its ability to combine deposit protection and instant transfers with access to the broader crypto ecosystem.
UK as Coinbase’s Growth Anchor
The company has identified the United Kingdom as its largest international market and a critical component of its expansion strategy. Coinbase obtained a Virtual Asset Service Provider (VASP) registration from the Financial Conduct Authority (FCA) in February, establishing it as the largest registered crypto exchange in the country. This new product aligns with the UK regulators' objective to integrate digital assets into existing financial frameworks. It also reflects Coinbase’s strategic shift towards revenue diversification beyond trading, a sector that has experienced pressure due to lower global volumes. However, Coinbase’s UK business has not been without scrutiny. In 2024, the FCA imposed a fine of £4.5 million on the exchange for repeated breaches of requirements related to high-risk customer onboarding. More recently, the Central Bank of Ireland levied a penalty of $24.7 million for failures in anti-money laundering and counterterrorism financing oversight between 2021 and 2025.
Regulatory compliance remains Coinbase’s most significant challenge in Europe. The introduction of a fully protected savings product could be instrumental in rebuilding trust and attracting traditional savers who are seeking yield.
Broader Implications
Coinbase's foray into UK savings accounts places it in direct competition with challenger banks, fintech companies, and established retail lenders. For consumers, this development blurs the lines between crypto platforms and traditional banking, offering a unified interface for saving, spending, and trading. The move also indicates that regulated crypto firms are expanding into traditional finance at a faster pace than banks are adopting blockchain-based services. Should Coinbase's strategy prove successful, it could prompt competitors such as Revolut and Kraken to introduce similar regulated offerings to maintain their market share. The savings account is scheduled for a nationwide rollout in stages over the coming weeks, with broader access anticipated before the end of the year.