Coinbase is moving deeper into traditional financial markets as it prepares to offer stock trading and event based contracts to its retail users, signaling a broader strategy to reduce dependence on crypto trading volumes. The US based exchange said the expansion will allow customers to trade equities alongside digital assets, positioning the platform as a more comprehensive investment destination. As competition for retail traders intensifies, firms across the industry are pushing to keep users active within a single ecosystem rather than losing activity to specialist brokerages. Coinbase’s move places it in more direct competition with established trading platforms that already offer multi asset access. The company believes the broader product lineup can attract new users while encouraging existing customers to consolidate their assets under one account, potentially stabilizing revenues that have historically fluctuated with crypto market cycles.
A key part of the expansion includes event contracts tied to real world outcomes, a growing segment that allows traders to speculate on outcomes across politics, sports, and financial indicators. Coinbase plans to offer these contracts through a partnership with prediction market platform Kalshi, with the possibility of working with additional providers in the future. While event contracts have gained popularity, they remain an area of regulatory tension in the United States. Some regulators argue the products resemble betting and raise concerns about speculative behavior among retail participants, while industry players maintain they fall under federal commodities oversight. Coinbase has warned that inconsistent state level approaches could create confusion for consumers and complicate compliance for platforms operating nationwide.
The exchange also confirmed plans to introduce tokenized stocks in the coming months, enabling round the clock trading and further blending traditional assets with blockchain based infrastructure. This initiative reflects a broader industry trend toward tokenization as firms explore ways to modernize settlement and expand access beyond standard market hours. Analysts estimate that prediction markets already generate billions in annual revenue and could see rapid growth as institutional participation increases. For Coinbase, the push into stocks, event contracts, and tokenized equities represents a strategic shift toward diversification at a time when crypto trading alone is no longer sufficient to sustain long term growth in an increasingly crowded retail market.
