Coinbase's 'Everything Exchange' Push: Stocks, Prediction Markets, and More

Coinbase Global Inc. is accelerating its expansion into traditional finance, with a newly revealed stock trading feature and a prediction markets platform set to redefine its role in the evolving crypto landscape. Tech researcher Jane Manchun Wong, known for uncovering in-development features at major tech firms, disclosed on November 19 that Coinbase is developing a stock trading business. This follows earlier leaks from Wong about a prediction markets platform, which the company is now set to launch via its partnership with regulated platform Kalshi. Screenshots shared by Wong show a Coinbase-branded interface for the prediction market, allowing users to trade using USDC or U.S. dollars across categories like economics, sports, and politics.

The prediction market initiative aligns with Coinbase's broader strategy to become an "everything exchange," offering a one-stop shop for crypto, derivatives, equities, and commodities. The company has already made strides in this direction, acquiring Deribit, a leading crypto options exchange, and launched perpetual futures trading in the U.S. in July. Meanwhile, the prediction market space is heating up, with rivals like Gemini and Crypto.com also entering the arena. Gemini recently filed to become a designated contract market with the Commodity Futures Trading Commission, while Crypto.com partnered with Trump Media to offer its own prediction product.

Coinbase's stock trading ambitions are further underscored by its pursuit of SEC approval for tokenized stock offerings. The company's CEO, Brian Armstrong, has emphasized that derivatives-accounting for 80% of global crypto trading volume-will play a pivotal role in its expansion. This aligns with the recent passage of the GENIUS Act, which provides regulatory clarity for stablecoin issuers and paves the way for tokenized assets in the U.S. market.

The move into prediction markets and stock trading also reflects Coinbase's efforts to diversify revenue streams. Transaction fees accounted for 50% of its Q3 2025 revenue, but the firm aims to reduce reliance on crypto trading by expanding into banking services and stablecoin partnerships. For instance, Coinbase Business, launched in Singapore, offers instant USDC payments and global transfers for small businesses, supported by real-time SGD banking infrastructure. The platform's international rollout underscores Coinbase's focus on regulatory compliance and global accessibility.

Market reactions to Coinbase's expansion have been mixed. While the company's stock has surged 5.5% year-to-date, reflecting optimism about its Q3 earnings and strategic bets, analysts warn of volatility. COIN shares trade at a forward P/E ratio of 37.73x, significantly higher than the sector median of 10.87x. However, bullish projections from analysts, with average price targets of $385.27, suggest confidence in Coinbase's long-term growth.

As the crypto industry inches toward mainstream adoption, Coinbase's dual focus on regulated prediction markets and tokenized equities positions it to capture a broader audience. With rivals like Gemini and Crypto.com competing for market share, the race to dominate the "everything exchange" model is heating up.