Coinbase (COIN) has opened trading of stocks and exchange-traded funds (ETFs) to all U.S. customers, expanding beyond digital assets as part of its plan to become an “exchange of everything.”
The rollout allows users to buy and sell US-listed stocks and ETFs on the same platform they use for crypto. Trading takes place 24 hours a day, five days a week, commission-free. Customers can fund trades with US dollars or USDC and purchase fractional shares starting at $1.
Coinbase outlined the expansion in December, when it announced plans to bring multiple asset classes under one roof. Earlier this month, it launched a predictions marketplace, allowing users to trade on the outcomes of real-world events. Stock trading marks another step in this strategy.
The move puts Coinbase in more direct competition with retail brokerages such as Robinhood (HOOD), which has doubled down on its suite of crypto products. This also reflects crypto companies’ desire to mix the asset class with traditional financial products. Breaking away from a crypto-only business model could help Coinbase loosen the link between its stock price and bitcoin. so it trades more as a diversified tech stock, providing some cushion in the event of a crypto downturn.
COIN and HOOD have lost around 35% this year due to digital asset struggles. EToro (ETOR) is down 13% over the same period, with the company’s fourth-quarter results showing strong stock trading on the platform.
To support the introduction, Coinbase has an agreement with Yahoo Finance. The financial news site will feature a button allowing users to go from searching for a stock to executing a stock trade. Yahoo Finance will also display real-time data from Coinbase within its interface.
Coinbase said it was working with Apex Fintech Solutions to provide custody and execution.
The company plans to expand 24/5 trading to more stocks in the coming months. It has also expressed interest in offering tokenized stocks, which would allow stocks to circulate on blockchain networks and potentially trade 24 hours a day.
