Coinbase launches full-scale U.S. stock and ETF trading… stepping up its 'everything exchange' strategy

Coinbase has begun offering stock and exchange-traded fund (ETF) trading to all U.S. customers, expanding its business beyond cryptocurrencies into traditional assets.

According to crypto-focused outlet CoinDesk on the 24th, Coinbase has launched a service enabling trading of U.S.-listed stocks and ETFs on its platform 24 hours a day, five days a week (24/5). There are no fees, and users can deposit trading funds in dollars or USDC. Fractional share purchases are also available starting from a minimum of $1.

The move is part of the 'everything exchange' initiative Coinbase outlined in December last year. Earlier this month, it also launched a prediction market service that lets users bet on outcomes of real-world events.

The expansion into stock trading is expected to intensify competition with retail brokerage Robinhood. At the same time, it is seen as a strategy to reduce reliance on crypto and ease a structure in which Coinbase's share price is excessively linked to Bitcoin’s price.

Coinbase is partnering with Apex Fintech Solutions for clearing, custody and execution. It is also teaming up with Yahoo Finance to provide a feature that links users from viewing ticker information to placing trades directly on Coinbase.

Meanwhile, shares of Coinbase and Robinhood have fallen about 35% so far this year. The push to add traditional asset trading is interpreted as an effort to reduce earnings volatility and position itself as a more diversified fintech company.

The company said it plans to expand 24/5 trading to more names and is also reviewing the potential introduction of blockchain-based tokenized stocks.