Coinbase Expands Trading Services to Include Stocks and ETFs for All US Customers

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Cryptocurrency exchange Coinbase Global, Inc. (COIN.US) has announced the availability of stock and exchange-traded fund (ETF) trading for all its customers in the United States. This move signifies the company's official expansion from digital assets into the realm of traditional securities, advancing its goal of becoming an all-in-one trading platform. Following this launch, users can now buy and sell U.S.-listed stocks and ETFs on the same platform they use for crypto assets. Trading will be available 24 hours a day, five days a week, with zero commissions. Customers can fund their accounts using US dollars or the stablecoin USDC and can purchase fractional shares starting from as little as $1. Coinbase had initially indicated its intention to integrate multiple asset classes onto a single platform as early as December of last year. Earlier this month, the company also introduced a prediction market, allowing users to trade on the outcomes of real-world events. The launch of stock trading marks a further step in the realization of this multi-asset strategy. This development places Coinbase in more direct competition with retail brokerages, particularly Robinhood (HOOD.US), which has been actively expanding its own cryptocurrency offerings in recent years. Industry observers believe that moving beyond a crypto-exclusive business model could help reduce the high correlation between Coinbase's stock price and Bitcoin's value, making the company resemble a more diversified technology platform and providing a buffer during downturns in the crypto market. Since the start of the year, digital assets have faced pressure, with both Coinbase and Robinhood seeing their stock prices decline by approximately 35%. In contrast, eToro (ETOR.US) has experienced a smaller decline of around 13% over the same period, with its fourth-quarter earnings report highlighting strong performance in stock trading on its platform. To support the launch of its new service, Coinbase has partnered with Yahoo Finance. The partnership will provide Yahoo Finance users with direct access to research stocks and execute trades with a single click, while the Yahoo Finance interface will display real-time market data sourced from Coinbase. For clearing, custody, and trade execution services, Coinbase stated it is collaborating with Apex Fintech Solutions. Looking ahead, Coinbase plans to expand the range of stocks available for 24/5 trading over the coming months and has expressed interest in tokenized stocks. This model would enable stocks to be traded on a blockchain network, theoretically allowing for around-the-clock trading. Market analysts suggest that this series of initiatives may redefine Coinbase's business boundaries and its valuation framework.

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