Crypto exchange pivots into always-on stock and ETF trading
Coinbase Becomes a 24/7 Broker
Coinbase’s bold pivot into always-on stock and ETF trading marks a significant evolution in its strategy to become a comprehensive financial platform, seamlessly integrating traditional equities with its established crypto offerings. This move, combined with an expanded derivatives suite and the looming regulatory challenges around stablecoin yield products, is reshaping the company’s growth trajectory and competitive positioning.
Coinbase Launches 24/7 Stock and ETF Trading, Expands Derivatives
In a landmark development, Coinbase has officially rolled out 24-hour stock and ETF trading for all U.S. customers, cementing its vision as an “everything app” that bridges crypto and traditional finance. This service enables retail investors to trade popular equities and ETFs around the clock, a capability previously limited to after-hours sessions or restricted brokerages.
Simultaneously, Coinbase has enhanced its derivatives offerings by introducing ROBO-PERP contracts with advanced order types, including limit, stop-limit, and trailing stop orders. These additions empower traders with more sophisticated tools typically found on established crypto and equity exchanges, reinforcing Coinbase’s ambition to provide a comprehensive, around-the-clock trading ecosystem.
Market Reaction: Share Price Surge and Competitive Implications
The announcement triggered a double-digit surge in Coinbase’s share price, propelling it into the ranks of the S&P 500’s top gainers on the day of the rollout. Investors have reacted positively to the new revenue streams and user-growth potential embedded in the always-on trading model.
- Market analysts highlight this move as a direct challenge to incumbent brokerages such as Robinhood, Charles Schwab, and Fidelity, which have yet to offer fully 24/7 stock and ETF trading.
- By blending crypto with equities and derivatives on a single platform, Coinbase is further blurring the lines between traditional finance and digital assets, potentially attracting a broader demographic of investors seeking a unified trading experience.
Revenue Context: Stablecoin Business at Risk Amid Regulatory Pressure
Despite the excitement around equities and derivatives, Coinbase’s core revenue engine remains its stablecoin and crypto businesses. Recent reports estimate that Coinbase generated approximately $1.35 billion in revenue from its stablecoin operations in 2025, underscoring the significance of this segment to its overall financial health.
However, this lucrative stablecoin yield revenue faces potential disruption. The Office of the Comptroller of the Currency (OCC) has floated new proposed rules under the GENIUS Act designed to restrict certain stablecoin rewards programs. These regulations could severely limit Coinbase’s ability to offer yield products linked to stablecoins, directly threatening a critical income stream.
- A Coinbase spokesperson noted, “While stablecoins have been a cornerstone of our growth, evolving regulatory frameworks make diversification imperative.”
- This regulatory uncertainty underscores why Coinbase’s expansion into always-on stock and ETF trading and advanced derivatives is strategically vital — it cushions against potential losses in the crypto yield business and widens the company’s market appeal.
Developments to Watch: Adoption, Competition, and Regulatory Landscape
As Coinbase advances this new offering, several key factors will determine its success and broader impact:
- Rollout Adoption Metrics: Monitoring how quickly users embrace 24/7 equities trading and derivatives will indicate product-market fit and potential revenue uplift.
- Trading Volumes & User Growth: Sustained increases in trading activity and new customer sign-ups will validate Coinbase’s “everything app” thesis and investor optimism.
- Competitive Responses: Traditional brokerages may accelerate their product innovation or adjust pricing models to counter Coinbase’s disruptive approach.
- Regulatory Responses: Further clarity and enforcement around stablecoin yield rules will influence Coinbase’s product roadmap and risk profile.
- Product Expansion: Coinbase is expected to continue enriching its derivatives lineup and introduce more sophisticated order types, potentially moving into options or futures on equities.
Conclusion
Coinbase’s launch of 24/7 stock and ETF trading combined with its expanded derivatives suite represents a pivotal step toward becoming a one-stop financial marketplace. The market’s enthusiastic response signals strong confidence in Coinbase’s growth potential beyond pure crypto trading.
Yet, with $1.35 billion in stablecoin revenue at regulatory risk, Coinbase’s diversification into traditional assets and derivatives is not just opportunistic but essential. The coming months will be critical as adoption trends emerge, competitors react, and regulators finalize stablecoin yield rules. How Coinbase navigates these challenges will shape the future of crypto-integrated finance and potentially redefine retail investing norms.