Coinbase Expands Beyond Crypto with Stocks, Prediction Markets

The centerpiece of Coinbase’s announcement is its foray into traditional equity trading. The company stated it will operate as a commission-free brokerage, supporting “thousands of equities and exchange-traded funds” that trade on a standard five-day week schedule. This offering, as noted in the company’s livestream, mirrors services from competitors and is described as an “important milestone” toward a larger goal: enabling tokenized stocks. Scott Shapiro, Coinbase’s Head of Trading, explained in an interview that the stock offering is designed from the start to be compatible with Circle’s USDC stablecoin, laying the technical groundwork for future tokenization.

However, the timeline for launching actual tokenized stock trading remains contingent on regulatory clarity. Shapiro noted that the process is “largely dependent on guidance being crafted by the U.S. Securities and Exchange Commission,” adding that recent government disruptions have not helped. The envisioned model would allow market participants to “wrap and unwrap” traditional shares, enabling them to move across various blockchains while the underlying asset remains securely custodied. Furthermore, Coinbase plans to debut a service allowing institutions to tokenize a broader range of real-world assets, and will introduce perpetual futures tied to international stocks next year.

Beyond stocks, Coinbase is aggressively diversifying its product suite into novel asset classes. Following Robinhood’s lead, the exchange indicated it will offer access to prediction markets, tapping a platform that competes with Kalshi and Polymarket. The potential revenue from this venture is significant; analysts at investment bank Compass Point estimated this week that Coinbase could generate $230 million annually from prediction markets. However, analysts at Mizuho offered a cautionary note, warning that a significant portion of users might sell cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to fund their wagers, which could impact core trading volumes.

On the decentralized finance (DeFi) front, Coinbase is deepening its integration with the Solana (SOL) ecosystem. The company announced that customers can now trade any asset supported on a Solana-based decentralized exchange directly within the main Coinbase mobile app. This follows a similar expansion in August when the exchange first offered access to tokens on its own Ethereum layer-2 network, Base. A company blog post stated, “With millions of assets on Base and Solana now available by default in the main Coinbase app, we’ll continue expanding to further networks over time.” The rebranded Base app, a self-custody wallet, has also expanded its reach, becoming available in 140 countries and blending social features with crypto functionality.

The Wednesday announcement framed these updates as part of a broader “system update” for the entire Coinbase platform. This vision extends to wealth management, with the introduction of an AI-powered advisor designed to help customers build portfolios and digest financial news. For businesses, Coinbase plans to offer a service for creating custom stablecoins, allowing companies to put their “brand front-and-center in every transaction.” The exchange noted this dovetails with emerging standards for internet-based stablecoin payments, which could power transactions for AI agents.

This expansive strategy comes as Coinbase (COIN) continues to lay the groundwork for its long-term vision amid market pressures. According to Yahoo Finance data, the company’s shares traded around $244 on the day of the announcement, reflecting a year-to-date decline of nearly 2%. The move into traditional finance and prediction markets represents a calculated effort to diversify revenue streams, attract a broader user base, and solidify its position not just as a crypto exchange, but as a foundational player in the future of digital finance, navigating the complex interplay between innovation and regulation.