Coinbase Launches "Everything Exchange" to Rival Robinhood in 24/7 Trading Expansion

Coinbase Global Inc. has officially rolled out its Base App to all users, marking a pivotal moment in the company's strategy to expand beyond crypto trading and establish itself as a one-stop financial platform. The app now includes features such as stock trading, prediction markets, and tokenized equities, all part of CEO Brian Armstrong's vision to create an "everything exchange." The expansion aims to capture a broader user base and compete with rivals like Robinhood and Kraken, who have also been diversifying their offerings.

The move was announced at a product showcase on December 17, where Coinbase revealed a suite of new services designed to integrate traditional finance with blockchain technology. Max Branzburg, head of consumer and business products, emphasized that the platform is now enabling 24/7 trading of stocks and ETFs globally. This expansion comes as the crypto market faces a selloff after a sharp downturn in October, prompting investors to seek more stable or diversified financial instruments.

Coinbase's prediction markets are powered by Kalshi Inc., a U.S.-based operator that has partnered with other platforms like Robinhood and Gemini. The feature allows users to bet on outcomes of events such as elections and sports games, a product that has gained traction over the past year. The company is also preparing to launch tokenized stocks, which will be handled in-house and not through third-party partners according to reports. This approach underscores Coinbase's push to bring traditional assets on-chain, leveraging blockchain for broader financial services.

A Strategic Push for Diversification

Coinbase's foray into stock trading and prediction markets is a direct response to increasing competition and shifting market dynamics. The company's new app is designed to offer a seamless experience for users to trade crypto, stocks, and event contracts from a single platform according to reports. This strategy is in line with Deutsche Bank's recent analysis, which highlighted that Coinbase is using its dominant position in the crypto space to build a more resilient business with diverse revenue streams.

The expansion is also backed by a broader tokenization roadmap, which aims to integrate traditional assets such as equities and commodities into blockchain-based systems. In a statement during the product showcase, Armstrong said that tokenized stocks could democratize access to global markets and foster new financial structures in the U.S. according to CNBC. This vision aligns with the growing trend of on-chain finance, where both traditional and decentralized financial systems are converging.

Market and Analyst Reactions

Analysts from Deutsche Bank have taken a bullish stance on Coinbase's strategy, initiating coverage with a Buy rating and a $340 price target. They believe that the company's shift from retail crypto trading to a broader on-chain platform could reduce earnings volatility and open up new growth avenues. The analysts also pointed out that Coinbase's expansion could benefit from the rising adoption of blockchain-based financial services, especially among institutional investors.

Meanwhile, the market has responded cautiously. While Coinbase's stock is down slightly for the year, the company remains optimistic about the long-term potential of its new services. Branzburg stated that the "everything exchange" is a key milestone in Coinbase's evolution, and the company is prepared to invest heavily in 2025 to scale its offerings. This investment is expected to weigh on short-term profitability but could pay off as the platform expands its user base and revenue streams.

Risks and Competitive Landscape

Despite the strategic advantages, Coinbase faces several challenges. The prediction markets sector is becoming increasingly competitive, with platforms like Polymarket, Gemini, and Robinhood already establishing a presence according to CNBC. Additionally, regulatory scrutiny remains a concern, particularly in the U.S., where the function of prediction markets is still evolving. Coinbase has joined the Coalition for Prediction Markets with Kalshi, Robinhood, and others, advocating for a transparent framework.

Another risk is the current state of the crypto market, which has been in a prolonged downturn. With trading volumes and investor sentiment fluctuating, Coinbase's success will depend on retaining its existing user base and attracting new customers to its expanded offerings. The company's ability to offer a 24/7 trading experience, supported by advanced tools like perpetuals and leveraged bets, could be a differentiator in a crowded market according to reports.

What This Means for Investors

For investors, Coinbase's new product suite offers both opportunities and uncertainties. The shift toward an "everything exchange" could reduce the company's reliance on crypto trading, which has historically been volatile. However, the initial investment costs and regulatory risks could dampen short-term performance. Deutsche Bank analysts believe the company is well-positioned to scale its expansion by 2026, assuming supportive market conditions.

Coinbase's expansion also signals a broader trend in the financial industry, where blockchain technology is being used to redefine asset classes and trading models. As more platforms enter the prediction markets and tokenized stock space, the competition is expected to intensify. However, Coinbase's first-mover advantage and strategic partnerships may give it a strong foundation to capture market share in the coming years.