Coinbase Expands Into Stock Trading for Select Users: A Step Toward an All-in-One Financial Platform

Coinbase is initiating stock trading for a limited group of users as it aims to develop an “everything exchange,” integrating cryptocurrencies, equities, and alternative markets onto a single platform.

Key Takeaways

Coinbase is launching limited stock trading for users as part of its goal to create an integrated financial platform.
The initiative pits Coinbase against traditional brokerages and rivals like Robinhood.
The exchange currently uses existing methods for stock trading, with plans to expand access soon.
Regulatory issues pose challenges for Coinbase's plans, especially regarding tokenized equities and stablecoin rewards.
The company remains hopeful for improved conditions in the regulatory landscape by 2026.

Coinbase Expands Into Stock Trading for Select Users: A Step Toward an All-in-One Financial Platform

This development positions Coinbase in direct competition with traditional brokerage firms such as Schwab and Fidelity, as well as its rival Robinhood, which has long provided the capability to trade both stocks and cryptocurrencies.

In a recent interview with Fortune, CEO Brian Armstrong explained his rationale for this timing, highlighting that the company is set to take the lead as financial assets transition to a blockchain-based infrastructure.

"We have deep expertise in crypto and are the most trusted brand in the cryptocurrency space," Armstrong stated, adding that Coinbase's goal is to connect traditional finance with crypto while progressing in the area of tokenized equities.

Stock Trading through Standard Channels

Currently, Coinbase is facilitating stock trading through conventional channels by utilizing Apex Fintech Solutions for its backend operations. There are plans to expand access to all customers in the coming weeks.

Armstrong acknowledged that fully tokenized equities—where shares are represented on the blockchain with associated rights like dividends and voting—are still years away and need thorough coordination with the SEC.

"The most intriguing offering is a tokenized asset that is genuinely represented one-to-one," Armstrong mentioned.

He anticipates this transition to start within two years, likely beginning with emerging companies before established entities adopt blockchain for share management.

The push for stock trading coincides with a notable increase in monthly transfer volumes for tokenized equities, which saw an approximate 19% rise in 30 days, reaching about $2.41 billion, as reported by rwa.xyz.

Tokenized Stock Metrics Chart

While Robinhood and Kraken already offer tokenized US shares in specific regions, Coinbase intends to develop these products internally, rather than relying on external partners.

Earlier this month, Armstrong shared three priorities for 2026 in a post on X, which include establishing the global everything exchange, scaling stablecoins and payment systems, and onboarding users onto the blockchain through developer tools and consumer applications.

"The goal is to position Coinbase as the leading financial app globally," he wrote, indicating substantial investments in product quality and automation.

This expansion goes beyond stocks, extending into prediction markets. Coinbase has partnered with the federally regulated platform Kalshi to introduce event contracts related to economics, politics, sports, and technology.

Screenshots leaked in November showcased a Coinbase-branded interface for predictions, supporting trading in USDC or USD through Coinbase Financial Markets, the exchange’s derivatives division.

Regulatory Challenges Hinder Growth

Armstrong's broader legislative plans faced setbacks when he withdrew Coinbase's backing for the Senate Banking Committee's draft crypto market structure bill, cautioning that it would lead to a "de facto ban" on tokenized equities, limit stablecoin rewards, and weaken the CFTC’s authority.

"We’d prefer no bill to a poorly constructed one," Armstrong stated on X, which resulted in a postponement of markup discussions while negotiations continue.

The ongoing disputes include provisions that would restrict stablecoin yields, which banks claim could blur the lines with deposit products.

Armstrong accused banking interests of influencing regulations that would negatively impact Coinbase's revenue tied to stablecoin rewards.

Meanwhile, Chairman Tim Scott conveyed that discussions would persist despite the hurdles.

"This bill reflects numerous months of serious bipartisan negotiations, incorporating feedback from innovators, investors, and law enforcement," Scott remarked, emphasizing the objective to create clear regulations that safeguard consumers and support the growth of the financial landscape in the U.S.

Citron Research intensified the conflict by supporting Securitize, a rival in tokenization, while accusing Coinbase of resisting clearer tokenization regulations to preserve its market position.

"Armstrong is primarily focused on safeguarding its revenue from stablecoin yields while opposing restrictions on tokenized equities," Citron asserted, suggesting that a more lenient framework would favor firms like Securitize, which holds broker-dealer licenses and has issued over $4 billion in tokenized assets for partners such as BlackRock and Apollo.

As a result of these criticisms, Coinbase's stock saw a nearly 4% decline.

Coinbase COIN Stock Price Chart

Armstrong has recently adopted a more conciliatory stance but insists that significant changes are needed in the draft before it gains industry support.

Nonetheless, Coinbase remains optimistic regarding its future. David Duong, Coinbase’s head of investment research, remarked that improvements in regulatory clarity and increased institutional engagement are creating promising conditions for the future.

"We anticipate that these dynamics will compound in 2026 as ETF approval processes accelerate, stablecoins play a larger role in delivery-vs-payment frameworks, and tokenized collateral gains broader acknowledgment," Duong noted in a year-end outlook.