Market News

Coinbase Expands Its Horizons: Stock and ETF Trading Now Available

In a landmark move, Coinbase (COIN) has launched stock and exchange-traded fund (ETF) trading for all U.S. customers.

This strategic expansion marks Coinbase's ambition to transform into an "everything exchange," integrating traditional assets with digital cryptocurrencies.

Users can now buy and sell U.S.-listed stocks and ETFs on the same platform used for crypto trading, which operates 24/5 with no commission fees.

Customers have the flexibility to fund trades using U.S. dollars or USDC, and they can purchase fractional shares starting at just $1.

The addition of stock trading enhances Coinbase's competitiveness against retail brokerages like Robinhood (HOOD), which have recently expanded their own crypto offerings.

By diversifying its services, Coinbase aims to reduce the correlation between its share price and Bitcoin's volatility, positioning itself more like a diversified tech stock.

Coinbase's stock and its peer HOOD have both seen a decline of about 35% this year, reflecting the challenges faced by digital assets in the market.

Additionally, a partnership with Yahoo Finance will allow users to transition seamlessly from stock research to trading.

Coinbase is also collaborating with Apex Fintech Solutions for execution and custody, while planning to broaden its trading offerings further.

This move includes future plans for tokenized stocks, potentially allowing for 24/7 trading on blockchain networks, significantly reshaping the trading landscape.