According to Fortune, Coinbase announced at its San Francisco “System Upgrade” event that customers can now trade stocks and place bets via prediction markets through a partnership with startup Kalshi. The stock trading will initially feature a curated list of major stocks and ETFs, with plans to expand to thousands more in coming months, and will be fee-free and available 24/5. Early next year, the company plans to roll out perpetual futures for stocks, but only outside the U.S. The event also featured CEO Brian Armstrong and unveiled a platform for startups called Coinbase Business, an AI wealth tool named Coinbase Advisor, and expanded access to the Solana blockchain. Notably, the company did not announce a release date for its long-teased proprietary cryptocurrency token.
The everything exchange war is on
This is a massive, direct shot across Robinhood’s bow. For years, Robinhood used its simple stock trading app as a beachhead to move into crypto. Now Coinbase, the dominant crypto brand, is doing the exact opposite. It’s a full-on fintech war. The “everything exchange” branding isn’t subtle—Coinbase wants to be the one app for all your speculative financial activity, whether it’s crypto, stocks, or betting on the next election. And honestly, leveraging its huge, crypto-savvy user base to cross-sell these new products is a smart play. The question is, can they make the interface and experience as dead-simple as Robinhood did for stocks? That’s the real test.
Prediction markets are a fascinating gamble
The Kalshi partnership is the wild card here. Prediction markets aren’t new, but they’ve been niche. By plugging Kalshi’s order flow into its massive platform, Coinbase could mainstream the idea of betting on real-world events. Think of it as a financialized version of sports betting, but for interest rates or political outcomes. It’s a potentially huge new revenue stream from a small fee split. But here’s the thing: it also brings regulatory scrutiny into a whole new arena. Crypto is already a regulatory minefield. Adding what some lawmakers will absolutely call “gambling” on top of that? It’s a bold, risky move that shows Coinbase is willing to push boundaries to find growth beyond volatile crypto trading fees.
Tokenization is the real endgame
Look, the stock trading news is big today. But the perpetual futures offering and the talk of tokenization point to where this is really headed. Coinbase isn’t just trying to be a traditional stock broker. It’s trying to bring the mechanics of crypto trading—24/7 markets, instant settlement, derivatives like perps—to traditional assets. When they talk about tokenized stocks gaining traction, that’s a market where Coinbase’s underlying tech and expertise could give them a massive edge. Basically, they’re betting that the future of all trading is on-chain, and they’re positioning themselves as the bridge. If that trend accelerates, they’re suddenly not just playing catch-up with Robinhood; they’re ahead of the curve.
A move born of necessity
Let’s be real. This aggressive diversification push isn’t just about ambition; it’s about survival. Crypto markets are sagging, Bitcoin is down 30% from its October highs, and Coinbase’s stock has given up its big gains this year. Their revenue is still wildly tied to crypto trading volumes. So they *have* to find other things for their users to do and other ways to make money. Stocks and prediction markets are logical adjacent bets. But it also feels a bit like throwing everything at the wall to see what sticks. An AI advisor? A platform for businesses? A global Base app? It’s a lot of announcements at once. The core challenge remains: can they execute on even half of this while navigating an incredibly complex regulatory landscape? I think their future depends on it.
