Crypto Giant Coinbase Expands into Stocks and Event Betting

Diversifying the Platform

Coinbase, a leading name in the cryptocurrency industry, is venturing into new territories. The company is introducing stock trading and event contracts to its platform. This strategic move aligns with a broader trend where investment platforms aim to offer a wider range of services to retain customers.

Event Contracts: A New Frontier

Event contracts allow users to bet on real-world events, such as sports outcomes or political results. However, this area is attracting regulatory scrutiny. Some state regulators view these contracts as a form of gambling, raising concerns about potential risks. Coinbase argues that varying regulations across states could confuse customers.

Competition and Partnerships

Coinbase isn't pioneering event contracts; competitors like Robinhood and Interactive Brokers have already entered this space. However, Coinbase believes it can offer the most diverse options. The company anticipates that its existing customer base will consolidate all their assets on a single platform.

To facilitate this expansion, Coinbase has partnered with Kalshi, with potential collaborations with other platforms in the future. Analysts predict that prediction markets could generate nearly $10 billion in revenue by 2030.

Tokenized Stocks on the Horizon

In addition to event contracts, Coinbase plans to launch tokenized stocks soon. This innovation will enable users to trade stocks 24/7. The company's ambition is clear: to become a one-stop shop for all types of trading.