What new trading options is Coinbase offering?

Coinbase is now offering trading in stocks and event contracts, expanding beyond its cryptocurrency focus.

Why is Coinbase adding stock and event contract trading?

Coinbase aims to diversify revenue, compete with rivals like Robinhood, and offer a wider range of assets to customers.

Are event contracts regulated on Coinbase?

Event contracts face regulatory uncertainty, with varied policies across different states, posing challenges for consistent oversight.

Home / Business and Economy / Coinbase Trades Crypto for Stocks & Event Contracts

Coinbase Trades Crypto for Stocks & Event Contracts

18 Dec

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Summary

Coinbase is expanding beyond cryptocurrency to offer stock and event contract trading.
This move aims to diversify revenue and compete with brokerage platforms like Robinhood.
Regulatory uncertainty surrounds event contracts, with varied state-level oversight.

Coinbase Trades Crypto for Stocks & Event Contracts

Coinbase announced on Wednesday, December 17th, that it will begin offering trading in stocks and event contracts, marking a significant expansion beyond its core cryptocurrency offerings. This strategic pivot aims to consolidate various asset classes onto a single platform, enhancing user convenience and broadening its market appeal.

The exchange's move into event contracts, which allow wagers on real-world outcomes, places it in direct competition with established players like Robinhood and Interactive Brokers. Despite concerns about a crowded market, Coinbase's head of consumer products expressed confidence in attracting both existing and new customers.

This diversification occurs amid heightened regulatory scrutiny for event contracts. While Coinbase advocates for consistent rules, some state regulators have raised concerns about their resemblance to betting. Coinbase also plans to launch tokenized stocks soon, enabling round-the-clock trading.