Coinbase Launches Stocks, Prediction Markets in Bid to Become Financial 'Everything App'

Coinbase, the largest U.S. cryptocurrency exchange, is expanding its offerings beyond digital assets to include stock trading and prediction markets. The company announced the new features during its year-end "System Update" conference on December 17, 2025. The move aims to position Coinbase as a one-stop financial platform for both retail and institutional clients according to recent reports.

The company is rolling out stock trading functionality, allowing users to purchase equities using the USDC stablecoin. This follows a broader industry trend of traditional and crypto-native platforms integrating multiple financial services into a single app. Coinbase's expansion into stocks will now put it in direct competition with platforms like Robinhood and eToro as industry analysis shows.

Coinbase is also launching prediction markets powered by Kalshi, offering users the ability to bet on outcomes of

events ranging from sports to political elections. Prediction markets have gained popularity in recent months, with analysts forecasting significant growth in the sector. The platform will introduce an AI-powered robo-adviser, tailored to help users manage their portfolios across crypto, stocks, and prediction markets according to platform updates.

A Push Toward a Financial "Everything App"

Coinbase's CEO, Brian Armstrong, emphasized that the company is no longer just a crypto exchange but a broader financial platform. "Crypto is updating all financial services," he said, indicating that every major asset class is expected to move on-chain, from equities and commodities to real-world assets like real estate according to market analysis.

The company's strategy is to retain its existing crypto-native audience while expanding into new markets. By offering a wider range of financial products, Coinbase aims to reduce its reliance on crypto trading fees, which have become increasingly competitive. This approach aligns with the broader trend in fintech, where platforms are combining banking, investing, and trading under one app.

Strategic Partnerships and Institutional Tools

Coinbase is also rolling out tools tailored for institutional clients. One of the key announcements was Coinbase Tokenize, an end-to-end platform for institutions to bring real-world assets on-chain. This includes the issuance, custody, and trading of tokenized assets, all in a single platform. The product is backed by 75 years of combined portfolio management experience and is currently in beta testing with select users according to company disclosures.

The exchange is also offering custom stablecoins for companies that want to embed their brand into transactions. These stablecoins are backed by USDC and are expected to launch in partnership with wallet platforms such as Solflare and R2 in the coming months. Coinbase is working to streamline decentralized trading on Solana by integrating with Jupiter, a decentralized exchange aggregator according to market reports.

Expanding Global Reach and Regulatory Compliance

Coinbase is expanding its global footprint as well. The company has received regulatory approval in India to acquire a minority stake in CoinDCX, one of the country's largest cryptocurrency exchanges. This move follows a broader strategy to re-enter the Indian market in 2026 with fiat on-ramps and localized services according to regulatory filings.

The expansion is occurring amid a highly competitive and evolving regulatory landscape. While some states in the U.S. are treating event contracts as speculative bets, Coinbase argues that consistent, transparent rules are essential for consumer protection and market growth. The platform continues to emphasize compliance with regulatory requirements across its global operations as market observers note.

Implications for the Crypto Ecosystem

Coinbase's expansion into traditional finance has broader implications for the crypto ecosystem. The company is positioning itself as a bridge between centralized finance and decentralized finance (DeFi). This includes support for on-chain liquidity, advanced trading tools, and the integration of tokenized real-world assets according to industry experts.

The launch of prediction markets is another strategic move to tap into growing demand for speculative and sentiment-driven products. Analysts from Citizens Financial Group estimate that prediction markets could generate up to $10 billion in revenue by 2030 as more institutions enter the space according to financial forecasts.

What This Means for Investors

For investors, Coinbase's transformation into a financial "everything app" introduces both opportunities and risks. The company's diversification into stocks, prediction markets, and tokenization may reduce its dependence on crypto trading, but it also increases the complexity of its business model. Deutsche Bank analysts have initiated coverage of Coinbase with a Buy rating, citing the potential for growth beyond crypto trading according to investment research.

However, the firm also noted that 2025 will likely be an investment-heavy year for Coinbase, with rising expenses and reduced EBITDA. The long-term success of these new initiatives will depend on their adoption rates and Coinbase's ability to maintain profitability amid regulatory and competitive pressures as analysts observe.