Coinbase $COIN ( ▼ 2.04% ) rose nearly 3% in early trading Thursday after the crypto exchange announced it’s launching commission-free stock trading and prediction markets in the US, another step in its push to become what it calls an “everything exchange.”
Users will now be able to trade stocks and ETFs directly inside the Coinbase app, alongside their crypto holdings. Trades will be commission-free and can be funded with either US dollars or the USDC stablecoin, giving Coinbase a more direct shot at traditional brokerage territory long dominated by firms like Robinhood $HOOD ( ▲ 1.17% ).
Prediction markets enter the chat
Coinbase is also jumping into prediction markets through a partnership with Kalshi, a CFTC-regulated platform. Users will be able to trade yes-or-no contracts tied to elections, sports, and economic data, with positions settled in US dollars or USDC.
Prediction markets have exploded in popularity over the past year after a federal court cleared the way for election-related event contracts. Platforms like Kalshi and Polymarket gained attention for accurately pricing the 2024 US presidential election, though critics continue to warn about manipulation and insider trading risks.
Coinbase is entering an increasingly crowded field. Gemini recently secured CFTC approval, Crypto.com is teaming up with Trump Media to launch markets on Truth Social, and Robinhood has already rolled out event contracts through Kalshi, with more than 11 billion contracts traded since late 2024.
More than just trading
Beyond stocks and prediction markets, Coinbase unveiled a slate of new products aimed at expanding far beyond crypto spot trading. These include Coinbase Business, custom-branded stablecoins backed by flexible collateral, an AI-powered financial advisor, and Coinbase Tokenize, an institutional platform designed to enable 24/7 on-chain trading of tokenized assets.
The strategy is clear: diversify revenue streams and reduce reliance on volatile crypto trading volumes by becoming a one-stop financial platform.
Coinbase shares are still down about 2.5% year-to-date, after giving back roughly half of the gains they had logged as recently as early October during the broader crypto market pullback. But Thursday’s move suggests investors are warming back up to the idea that Coinbase’s future may look a lot more like a fintech super-app than a pure crypto exchange.