Coinbase Adds Stocks and Predictions

• Coinbase launches commission-free stock trading and Kalshi prediction markets to rival Robinhood.
• The “Everything Exchange” update lets users trade crypto, equities, and event contracts in one app.
• Stock trading runs 24/5 with zero fees, targeting the “capital efficiency” of active retail traders.

Leading cryptocurrency exchange Coinbase is expanding its boundaries further into the mainstream financial sector after announcing it would begin offering stock trading and prediction market services.

Stocks and Bets Now Available on Coinbase

In an event on Wednesday, Coinbase CEO Brian Armstrong told his audience that the platform’s customers will now be able to trade stocks and place bets on a wide range of events. According to Armstrong, the crypto exchange can deliver prediction market services following its partnership with Kalshi, the sector’s top startup.

Besides offering stock trading services and access to prediction markets, Armstrong also introduced new trading features on Coinbase and a platform called Coinbase Business, which the firm aims at startups and small businesses. It is worth noting that Coinbase used last Wednesday’s event as an opportunity to inform users about its rebranding as an “everything exchange.”

Contrary to expectations, Coinbase did not launch or announce the release date for a new cryptocurrency token that its executives have tested in recent months. However, Armstrong assured the audience of the firm’s resolve to ensure that any token release follows a fair process.

Related: Coinbase Eyes Prediction Markets and Tokenized Equity to Verticalize Stack

Testing Coinbase’s Leverage Capacity

In the meantime, crypto industry members and stakeholders in the broader financial sector consider Coinbase’s stock trading feature the most significant aspect of its latest update. Most people believe this feature will test the company’s capacity to leverage its dominant crypto brand and expand into other sectors. 

The move will also highlight the direct competition between Coinbase and Robinhood, considering that the latter moved in the opposite direction by being a stock-trading app that has made significant inroads into crypto.

According to Armstrong, Coinbase will kickstart the process by offering only a curated list of major stocks and ETFs. However, the exchange promised to expand the options to thousands of other stocks in the coming months, with stock trading services available 24 hours a day, five days a week, and without trading fees.

Related: Kalshi and Crypto.com Launch Coalition to Keep Prediction Markets Federal