Coinbase to Open Stock Trading to All Customers in Coming Weeks

Coinbase plans to open stock trading to all of its customers in the coming weeks. The move expands its product suite beyond digital assets into traditional markets. The platform announced 24/5 stock and ETF trading for S&P 500 companies in December.

The expansion is part of Coinbase's strategy to become an "everything exchange." The company also added prediction markets and real-world asset tokenization to its roadmap. These efforts aim to diversify revenue beyond crypto trading fees.

Coinbase's broader product development has drawn attention from analysts. Bank of America upgraded Coinbase stock to buy with a $340 price target. The target implies a 38% upside from the current price of $245.60.

Why Did This Happen?

The expansion into traditional markets is a response to changing user demands. Investors are seeking 24/7 access to financial products, and Coinbase's new offerings aim to meet that need. The company is also diversifying away from the volatility of crypto trading.

Coinbase has faced regulatory and market headwinds in recent months. The stock has fallen 40% from July highs and is down 5.6% over the past 12 months. However, the company's product roadmap has accelerated.

The firm is also exploring tokenization for real-world assets. Coinbase Tokenize is being developed to bring private equity and real estate onto blockchain platforms. This move targets asset managers seeking crypto-native investors.

How Did Markets Respond?

Bank of America cited favorable technical factors for the upgrade. Short interest in COIN stock is reversing, and tax-loss selling pressure is easing. These factors create a more favorable environment for the stock.

Coinbase's strategic moves are not isolated. South Korea recently advanced legislation to legalize tokenized securities. The new rules are set to take effect in 2027 and will regulate blockchain-based securities through licensed intermediaries.

The firm also faces regulatory scrutiny in the U.S. Coinbase withdrew its support for the Senate's CLARITY Act, citing restrictions on tokenized equities and DeFi. The bill would have imposed rules that could harm the U.S. crypto industry.

What Are Analysts Watching Next?

Coinbase's potential Base token could raise billions and boost decentralized finance development. The token would decentralize the platform and incentivize developers. However, no official plans have been announced.

The company's cash position remains strong. Coinbase has $11.9 billion in USD resources and $2.6 billion in long-term crypto assets. This positions it well for continued expansion.

Analysts are watching for further regulatory clarity and market adoption of tokenized assets. The potential market for tokenized real-world assets is expected to reach $2 trillion globally by 2028.

Coinbase's stock trading expansion could increase its addressable market. The company is positioned to cross-sell services to users who already engage with crypto assets. This strategy could drive user growth and revenue diversification.