$Coinbase (COIN.US)$ is currently undertaking its most significant transformation effort to date, repositioning itself as a mainstream trading and financial platform that transcends the realm of cryptocurrencies and ventures into the broader retail investment sector. This follows the proven success of competitors in generating substantial revenue through continuously engaging online products.
The digital asset exchange announced on Wednesday the launch of a series of major new products aimed at transforming Coinbase into an 'all-in-one financial app.' Its services will expand to include stocks, more advanced trading tools, and prediction markets, while also doubling down on its on-chain ecosystem and offering new tools for businesses, developers, and automated finance guidance.
Although many of these products have been hinted at in prior months, Coinbase stated that they are now fully developed and ready for deployment.
CEO Brian Armstrong is striving to transform his platform into a venue where users can trade 'anything.'
This includes stocks, streamlined futures and perpetual contracts experiences, as well as access to prediction markets via Kalshi. Additionally, the company has outlined a tokenization roadmap designed to eventually bring more traditional assets, including stocks, onto the blockchain.
The prediction market sector, in particular, is becoming increasingly crowded.
DraftKings has moved to acquire its own exchange, FanDuel is partnering with $CME Group (CME.US)$ , while Polymarket is entering the U.S. market through a newly approved venue. Meanwhile, Robinhood is placing LedgerX at the core of its compliance efforts.
At the heart of this field remains the rivalry between Kalshi and Polymarket — the battle between 'regulated channels' and 'crypto-native liquidity.'
Armstrong noted that the appeal of this category lies not only in trading but also in the insights it provides into sentiment and how people perceive the future developments of any given topic.
Armstrong noted, 'If you look at economic indicators... or things like elections, people are using prediction markets to try and figure out what will happen next month.' 'Perhaps only 1% of individuals trade it as an asset class, while 99% use it as a way to understand trends—almost like a competitor to traditional media, and possibly even the entertainment industry.'
During the company’s third-quarter earnings call with analysts in October, Armstrong demonstrated how easily bets in prediction markets could be manipulated, casually mentioning several terms currently being wagered on.
'I’m a bit distracted because I’ve been following the prediction markets about what Coinbase might say during its next earnings call,' Armstrong remarked. 'I just want to throw in Bitcoin, Ethereum, blockchain, staking, and Web3 here to make sure we mention them before the call ends.'
$Robinhood (HOOD.US)$ This week highlighted this shift by expanding prediction markets to sports-style contracts resembling 'parlays' and 'prop bets' in sports betting, while declaring this segment as its fastest-growing revenue driver.
Coinbase is now integrating similar outcome trading into its own ecosystem, but this forms part of a broader vision: the next-generation brokerage will be a single app combining traditional assets, derivatives, and on-chain access.
While expanding its trading business, Coinbase has also introduced a tokenization roadmap, signaling where it envisions the platform heading: bringing more traditional assets, including stocks, onto the blockchain.
The company is launching Coinbase Tokenize, an institutional-grade technology stack designed to support the tokenization of real-world assets (RWAs).
Armstrong described this expansion as a bridge toward a larger goal.
He stated that trading stocks was 'a good first step,' but the ultimate aim was tokenized stocks. He explained that if Coinbase could bring tokenized stocks online, it would 'democratize access for people worldwide' and unlock new market structures in the U.S., including more robust and professional futures markets linked to equities.
'So, this is just the beginning,' he said.
This statement further extends Coinbase's efforts to become a provider of on-chain liquidity, rather than merely a venue for token listings.
For enterprises and developers, Coinbase is broadening its platform narrative beyond retail trading. The company stated that Coinbase Business is opening to eligible customers in the U.S. and Singapore and is launching an expanded API suite covering custody, payments, trading, and stablecoins.
Armstrong’s core argument is that cryptocurrency is not a niche category but an upgrade cycle for the financial system itself.
"Cryptocurrency is updating all financial services," he said, hinting that over time, every major asset class will move on-chain, from prediction markets and equities to commodities, and eventually even real-world assets like real estate.
He noted that even the largest asset managers are signaling their intent to migrate funds on-chain, positioning Coinbase at the center of this transformation as a key platform.
Additionally, Coinbase has introduced "custom stablecoins" for companies seeking branded stablecoin channels, with a particular focus on x402. The company describes it as a payment standard designed to make stablecoin payments easier to attach to web requests—including those used for automated commerce and agent-driven transactions.
The strategic thread running through these initiatives is 'retention' and 'diversification.'
With an already substantial crypto-native audience, Coinbase aims to keep these customers on its platform across all asset classes, even as cryptocurrency trading volumes cool and trading revenues compress.
Editor/Doris