Coinbase Expands Offerings: Stock Trading and Prediction Markets Launch

Coinbase is expanding its offerings by entering stock trading and prediction markets, marking a significant shift in its business model. According to Fortune, the company announced that customers will now be able to trade stocks and place bets on various events through a partnership with prediction market startup Kalshi.

This move positions Coinbase as a more comprehensive financial platform, aiming to rival fintech firms like Robinhood. The stock trading feature will initially include a curated list of major stocks and ETFs, with plans to expand to thousands of stocks in the coming months.

Coinbase's stock trading will operate 24 hours a day, five days a week, with no fees for trades. Additionally, perpetual futures for stocks will be introduced, although this feature will only be available outside the U.S.

The partnership with Kalshi will allow Coinbase to offer event contracts on outcomes ranging from politics to sports. As noted by Casino.org News, this expansion is part of Coinbase's broader goal to diversify its revenue streams beyond cryptocurrency.

Analysts suggest that while Coinbase's entry into prediction markets is logical, it may face stiff competition from Robinhood, which has been aggressive in expanding its own prediction market offerings.

The announcement was made at a San Francisco event titled System Upgrade, where Coinbase also revealed its Base App is now available in 140 countries, aiming to empower users in financial and creative ventures.