Coinbase Global Inc. unveiled an ambitious array of new services on Wednesday, thrusting itself deeper into traditional finance with stock trading, prediction markets and custom stablecoins. The expansions, announced during a livestreamed “Coinbase System Update,” signal the cryptocurrency exchange’s determination to evolve into a comprehensive trading hub amid regulatory shifts and intensifying competition.

At the heart of the rollout is integration with Kalshi, the regulated prediction markets platform, bringing thousands of event-contract markets to Coinbase users. CEO Brian Armstrong highlighted the move in a post on X, stating, “Prediction markets have found incredible product-market fit over the last year or so, and become arguably the best source of news and information for many topics.” This partnership allows traders to wager on real-world outcomes—from elections to economic data—directly within the Coinbase app.

The stock trading feature marks Coinbase’s entry into equities, offering U.S. users access to thousands of shares alongside cryptocurrencies. Advanced trading tools, including perpetual futures and enhanced charting, further bridge crypto and conventional markets. Coinbase also launched custom stablecoins, enabling businesses to issue branded digital dollars backed by USDC.

Prediction Markets Power Up Coinbase’s Arsenal

Prediction markets on Coinbase, powered by Kalshi, rolled out immediately for U.S. users, with Coinbase posting on X: “Thousands of @Kalshi contracts will be available for trading on Coinbase.” Kalshi itself celebrated the tie-up, noting on X, “Coinbase partners with Kalshi to launch prediction markets. The most trusted name in crypto integrates the world’s leading prediction market.” This integration leverages Kalshi’s CFTC-regulated status, addressing past hurdles for crypto platforms eyeing derivatives.

Analysts see this as a strategic pivot. In a note following the announcement, CoinDesk reported that Coinbase shares rose as the expansion drew praise, with Oppenheimer analyst Owen Lau calling it a “positive catalyst” that could boost trading volumes and diversify revenue. Coinbase’s official blog post detailed the vision: “The future of finance is on Coinbase,” encompassing onchain tools, Solana DEX trading via Jupiter and automated financial guidance.

These markets have surged in popularity post-2024 U.S. elections, with Kalshi’s volumes hitting records. Coinbase’s move positions it to capture this growth, potentially onboarding millions more users to prediction trading.

Stocks Meet Crypto in One App

Stock trading arrives via Coinbase Financial Markets, a National Futures Association member, enabling seamless shifts between crypto, equities and futures. As CNBC noted, “Coinbase is expanding into stocks, advanced trading, prediction markets and new tools for businesses, developers and automated financial guidance.” This unifies portfolios, reducing friction for retail investors.

Beyond basics, Coinbase introduced perpetual futures on equities and crypto, plus Solana decentralized exchange access through Jupiter aggregator. Custom stablecoins let firms like payment processors launch private-label versions pegged 1:1 to USDC, simplifying treasury operations. Yahoo Finance highlighted Coinbase’s broader ambitions, quoting Armstrong: the firm aims to serve “the next billion users onchain.”

Regulatory tailwinds aid this push. Recent CFTC approvals for prediction markets and SEC leniency on crypto custody have cleared paths long blocked for exchanges like Coinbase.

Stablecoins and Onchain Tools for Enterprises

Custom Stablecoins represent a B2B play, allowing companies to mint stable value without building infrastructure. Backed by Coinbase’s USDC reserves, these tokens integrate with payment rails and DeFi protocols. The Coinbase blog explained: “Businesses can now issue their own stablecoins backed by USDC, giving them full control over branding and distribution.”

Developer tools expanded too, including APIs for onchain finance and automated advisors powered by AI integrations like Perplexity. Coinbase’s X posts teased further rollouts, emphasizing a unified balance for trading, staking and spending.

For institutions, this means one-stop access to crypto perps, equity futures and prediction contracts, potentially challenging incumbents like Interactive Brokers or Robinhood.

Market Reaction and Competitive Pressures

COIN shares climbed 4% Thursday, per CoinDesk, reflecting optimism. Oppenheimer’s Lau projected higher engagement, noting prediction markets could mirror crypto’s viral appeal. Yet risks loom: prediction trading’s volatility drew scrutiny in 2024, and stocks invite SEC oversight.

Competitors reacted swiftly. Robinhood expanded crypto offerings, while traditional brokers eye crypto desks. Coinbase’s edge lies in its 100 million users and crypto-native tech stack.

Armstrong envisions an “everything exchange,” blending TradFi speed with blockchain transparency. Posts on X from Coinbase underscored: “Rolling out in the U.S.” for Kalshi contracts, with disclaimers on risks.

Regulatory Pathways and Future Horizons

Coinbase navigated U.S. rules meticulously, routing prediction markets through its NFA-registered arm. CNBC reported sources confirming the Kalshi unveil weeks ago, underscoring preparation amid a pro-crypto policy shift.

Yahoo Finance detailed Coinbase’s revenue diversification, with trading fees from new assets offsetting crypto volatility. International expansion looms, though U.S. focus dominates.

The System Update livestream revealed more: equity perps, novel cryptos and onchain payments. As Armstrong posted on X, this fulfills the “everything exchange” promise, potentially redefining retail finance by 2026.

Implications for Traders and Innovators

For pros, advanced tools like TradingView charts and real-time order books elevate execution. Coinbase’s prior Pro upgrades, now app-wide, set the stage.

Institutional adoption could accelerate via stablecoin issuance, mirroring Circle’s USDC success. CoinDesk noted the stock bump as validation, with analysts forecasting 20% volume growth.

This convergence of assets under one roof challenges silos, promising efficiency but demanding robust risk controls.