Cryptocurrency exchange Coinbase Global (COIN) is launching equity trading and prediction markets to evolve into an “everything app,” blending traditional assets, derivatives, and on-chain tools. The company will soon allow its existing users to trade stocks and event contracts tied to real-world outcomes, intensifying competition in retail investing. COIN stock jumped 1.5% in after-hours trading following the news.
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The exchange is diversifying its offerings to include all asset classes, reducing its heavy reliance on crypto trading, an asset class that has turned highly volatile lately. Coinbase is also rolling out “custom stablecoins” and “Coinbase tokenization” to expand the offerings of institutional clients.
Diversifying into Prediction Markets and Equities
The new trading options will place Coinbase directly in competition with large brokerages such as Interactive Brokers (IBKR) and Robinhood Markets (HOOD). The company is partnering with Kalshi Inc. to offer event contracts on sports, politics, finance, and more. Robinhood has also partnered with Kalshi to enter prediction markets.
CEO Brian Armstrong told CNBC yesterday that users treat prediction markets less as speculative assets (just 1%) and more as forecasting tools (99%) for elections, economics, or entertainment, rivaling traditional polling.
Enhancing Institutional Offerings
Custom stablecoins will allow companies to roll out their own branded stablecoins, backed by a mix of USDC and other US dollar-backed stablecoins. Coinbase is also highlighting x402, a payments standard that simplifies attaching stablecoin payments to web requests, like for automated shopping and AI transactions.
Additionally, under “Coinbase Tokenize,” institutions will be able to tokenize assets like their own shares, setting the stage for tokenized stocks. Coinbase believes everything will eventually be tokenized, and bringing stocks to the platform marks an important milestone toward that. Tokenized stocks will enable 24/7 global trading, on-chain use of owned stocks, and instant payments.
Is COIN Stock a Buy?
Analysts remain divided on Coinbase Global’s long-term prospects. On TipRanks, COIN stock has a Moderate Buy consensus rating based on 17 Buys, seven Holds, and one Sell rating. The average Coinbase Global price target of $391.30 implies 60.2% upside potential from current levels. Year-to-date, COIN stock has lost 1.7%.
