Coinbase Balances DeFi Growth and Regulation with Wallet Migration

Coinbase Global Inc. (COIN) is set to execute a major wallet migration on November 22, with the cryptocurrency exchange describing the move as a planned operation to enhance security standards. The transition, expected to occur within 30 minutes, involves transferring assets between existing and new wallet addresses under Coinbase's control. The company emphasized that users will experience no downtime and can continue transacting normally during the migration, with deposit addresses remaining unchanged. This step follows a broader strategy to fortify infrastructure amid rising demand for decentralized finance (DeFi) services and regulatory scrutiny.

The migration announcement aligns with Coinbase's recent expansion of decentralized exchange (DEX) trading capabilities to Brazil, a market the company has targeted as part of its "everything app" vision. The DEX feature, branded as "DeFi Mullet," allows users to trade over 10,000 tokens-primarily via platforms like Uniswap and Aerodrome-without leaving the Coinbase interface. Powered by Coinbase's Ethereum layer 2 network, Base, the service eliminates network fees for users employing self-custody wallets, a move the company said aims to democratize access to DeFi protocols. Brazil's entry follows the U.S. launch in October and coincides with new central bank regulations requiring crypto firms to obtain licenses and report international transactions.

Coinbase's aggressive expansion strategy also includes the acquisition of Vector, a Solana-based on-chain trading platform, marking its ninth acquisition of 2025. The deal, expected to close by year-end, integrates Vector's high-speed Solana infrastructure into Coinbase's consumer trading division, accelerating support for emerging assets and improving execution for traders. This follows earlier acquisitions such as Deribit for $2.9 billion and Echo for $375 million, underscoring Coinbase's focus on consolidating market infrastructure to compete with traditional and decentralized rivals.

Meanwhile, the exchange is preparing to launch a prediction market powered by Kalshi, a platform that allows users to bet on events, sports, and elections. The initiative, set for a December 17 announcement, positions Coinbase to enter a growing sector where competitors like Robinhood and Cboe are also active. The prediction market will enable users to deposit USDC stablecoins, with Coinbase holding the tokens in custody-a move reflecting its balancing act between innovation and regulatory compliance.

In parallel, rival exchange Bitget Wallet has expanded its self-custodial trading suite to include tokenized stocks and ETFs, further blurring lines between traditional and crypto markets. By integrating with Ondo Global Markets, Bitget now offers 24/5 access to tokenized equities, catering to users in emerging markets where onchain solutions bypass geographic and regulatory barriers. This development highlights a broader industry shift toward hybrid financial products, with Coinbase and others racing to redefine access to global capital markets.