Coinbase announced a significant expansion of its services, introducing 11 new businesses simultaneously. This move follows a period of challenging Q1 earnings and a general decline in crypto trading revenues across the market. The company’s push aims to transform it into an “everything app” for financial services.
Among the new offerings, Coinbase will provide commission-free stocks, ETF indexes on Coinbase Advanced, and allow users to transfer existing brokerage portfolios without selling assets via ACATS. The platform also plans to introduce options trading for both crypto and equities, broadening its investment product suite.
A notable development is the introduction of 24/7 perpetual-style stock index trading. These perpetual swaps, previously common in crypto markets and now being legalized in the United States, will settle on USDC and offer up to 20x leverage. The high leverage potential for certain stocks raises questions regarding implementation and risk management.
Coinbase is also venturing into pre-IPO perpetual swaps. This will allow trading on private companies like SpaceX, OpenAI, and Anthropic before their public offerings, a feature previously seen on other exchanges such as Hyperliquid. This provides early access to potential growth for private market assets.
The company’s most intriguing new service is “Coinbase Advisor,” described as one of the first SEC-registered AI-powered investment advisors. This service allows users to interact in plain English, with the AI then acting on their accounts. The registration with the SEC for an AI advisor raises questions about fiduciary duty and responsibility, typically associated with human financial advisors.
Additionally, Coinbase is launching autonomous AI trading agents, a product already available on other platforms like OKX. These agents offer automated trading strategies, further integrating artificial intelligence into the platform’s offerings.
The expansion into these diverse financial products and services marks a strategic shift for Coinbase, moving beyond its core crypto exchange business. The integration of AI-powered advisory services and high-leverage perpetual swaps on traditional assets presents both opportunities and regulatory complexities that will require careful observation as these services roll out.
Uncertainty remains regarding the specifics of how Coinbase will manage the regulatory implications of an SEC-registered AI advisor, particularly concerning fiduciary responsibilities. The high leverage offered on perpetual stock indexes also warrants close attention from regulators and investors alike.