Coinbase has started rolling out stock trading to a small group of users, signaling a fresh push beyond crypto. According to Fortune report, the move marks a key step in CEO Brian Armstrong’s plan to turn the platform into an “all-in-one” place for investing. 

Besides crypto, the company wants to support stocks, prediction markets, and other products under one roof. Armstrong has framed the shift as part of a long-term strategy. He believes more financial assets will move onto blockchain networks over time.

Armstrong founded Coinbase in 2012 and built it into one of the biggest names in crypto. The company already offers products like wallets, stablecoins, and a Bitcoin-linked credit card. 

However, Coinbase still relies heavily on crypto trading activity for revenue. Hence, adding stocks could help reduce dependence on market cycles. It could also attract customers who want a single account for both crypto and traditional assets.

Coinbase Targets a Bigger Investing Market

Coinbase will offer stocks in a conventional format at first. Additionally, the company is using Apex Fintech Solutions to support the backend operations. The stock feature remains limited for now. However, Coinbase expects to expand access to its wider user base in the coming weeks.

The challenge will be convincing crypto-focused users to trade stocks on the same platform. Significantly, Coinbase will face direct competition from Schwab, Fidelity, and Robinhood. Robinhood has blended stock and crypto trading for years. Consequently, its share price has outperformed Coinbase during recent periods, based on market comparisons.

Tokenized Equities Remain the Long-Term Goal

Armstrong has also pointed to tokenized equities as a future opportunity. This concept would place stocks directly on blockchain networks. Moreover, it could shorten settlement times and allow broader trading access. It may also reduce friction tied to traditional market systems.

Still, tokenized stock products remain rare, and the model creates questions for regulators. Some offerings in the market resemble derivatives rather than direct share ownership. Additionally, public companies have raised concerns about consent and control over how those tokens trade.

Regulation Could Decide the Timeline

Armstrong expects onchain stock issuance could begin within the next two years. However, the timeline depends on clearer rules. Congress continues debating the Clarity Act, which aims to shape a regulatory framework for crypto markets. 

The process has faced delays after disputes between industry groups and banks. Coinbase also briefly pulled support after late changes to the draft, then softened its stance soon after.

Even so, Coinbase appears committed to its broader expansion. Armstrong has also floated the idea of paying dividends in Bitcoin one day. In the long run, he expects blockchain-based shares to become the industry standard.