Coinbase Unveils Prediction Markets, Stock Trading, and Solana DeFi Integration

Coinbase indicated Wednesday that its platform is expanding beyond digital assets, with U.S. customers gaining access to traditional stock trading as part of a major update.

A livestream event will detail changes to more than a dozen new and existing products, ranging from prediction markets to decentralized finance on Solana, as well as an end-to-end platform for creating digital representations of real-world assets.

As a commission-free brokerage, Coinbase says it will support thousands of stocks and exchange-traded funds that trade five days a week in the coming months. The company also plans to introduce perpetual futures linked to stocks outside the US next year.

The offering mirrors services offered by competitors like Kraken and Robinhood, which Coinbase described as a “major milestone toward enabling tokenized stocks.” Coinbase also plans to introduce a service that will allow institutions to tokenize assets.

In an interview with DeclutterCoinbase Head of Trading Scott Shapiro said the company hopes to offer access to tokenized stock trading in the coming quarter. He noted that Coinbase’s stock offering has been compatible with Circle’s USDC stablecoin from the start.

“There is still a lot of work to do,” he said, explaining that the timeline for tokenization is largely dependent on U.S. Securities and Exchange Commission guidelines. “The government shutdown clearly didn’t help.”

Shapiro said the Coinbase model for tokenization will allow market participants to “pack and unpack” traditional stocks, which can move across different blockchains and applications while “still keeping the underlying stocks in a safe place.”

Following Robinhood’s lead support of the Kalshi-powered prediction markets this summer, Coinbase indicated its entry into the space will also tap Polymarket rival. The company noted that it plans to integrate additional prediction market platforms in the future.

The company said it will also allow U.S. customers to trade perpetual futures, allowing traders to hold leveraged positions tied to digital assets indefinitely. In July, Coinbase started offering perpetual futures for Bitcoin and Ethereum.

The company said customers can now trade any asset supported on a Solana-based decentralized exchange directly within Coinbase’s mobile app. The function was teased in August, when Coinbase first offered access to tokens on its Ethereum layer-2 network, Base.

“With millions of assets on Base and Solana now available natively in the main Coinbase app, we will continue to expand to other networks over time,” a company blog post said.

Coinbase emphasized that its Base app, a rebranding of the company’s self-custodial wallet, has become available in 140 countries. The app allows users to monetize messages and play games, combining social elements with features that crypto users have become accustomed to.

The company said the “system update” also includes an AI-powered wealth management advisor that can help clients build portfolios or digest news.

Finally, the exchange said it would offer a service that allows companies to create customized stablecoins, allowing them to put their “brand at the heart of every transaction.” This is in line with x402, an internet standard for stablecoin payments that can be used Power AI agent paymentsthe exchange added.

Analysts at investment bank Compass Point estimated this week that Coinbase could rake in $230 million annually from prediction markets. However, so do analysts at investment bank Mizuho warned that a significant portion of users will likely sell crypto to fund bets.

Shares of Coinbase changed hands around $244 on Wednesday Yahoo Finance. The company’s share price is down nearly 2% this year as the company continues to lay the foundation for its vision for the future of finance.