Coinbase (COIN) has opened trading of stocks and exchange-traded funds (ETFs) to all US customers, expanding beyond digital assets as part of its plan to become an “everything exchange.”
The implementation allows users to buy and sell US-listed stocks and ETFs on the same platform they use for cryptocurrencies. Operations are carried out 24 hours a day, five days a week, without commission. Clients can fund trades with US dollars or USDC and purchase fractional shares starting at $1.
Coinbase outlined the expansion in December, when it said it intended to bring multiple asset classes together under one roof. Earlier this month, it introduced a prediction market that allows users to trade the outcomes of real-world events. Stock trading marks another step in that strategy.
The move puts Coinbase in more direct competition with retail brokers like Robinhood (HOOD), which has been doubling down on its suite of crypto products. It also reflects a push among crypto companies to combine the asset class with traditional financial products. Breaking with a crypto-only business model could help Coinbase loosen the link between its stock price and bitcoin so it trades more like a diversified tech stock, offering some protection during a crypto downturn.
Both COIN and HOOD have lost around 35% this year due to the digital asset struggle. EToro (ETOR) is 13% lower over the same period, and the company’s fourth-quarter earnings show strong stock trading on the platform.
To support the introduction, Coinbase has an agreement with Yahoo Finance. The financial news site will have a button that will allow users to go from researching a stock to executing a trade on the stock market. Yahoo Finance will also display real-time data from Coinbase within its interface.
Coinbase said it is working with Apex Fintech Solutions to clean up custody and execution.
The company plans to expand 24/5 trading to more stocks in the coming months. It has also shown interest in offering tokenized shares, which would allow shares to move on blockchain networks and potentially trade 24 hours a day.
