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Coinbase Wants to Be Everything to Everyone: Can It Actually Pull That Off?

MarketDash Editorial Team
21 hours ago
Coinbase just announced stock trading with zero commissions and 24-hour access, directly challenging Robinhood's dominance. But the crypto platform's real ambition is tokenized equities on blockchain—traditional stocks are just the warm-up act.

Coinbase Global Inc. (COIN) decided it wants to be your everything app for trading. The crypto exchange stood up at its System Update event in San Francisco on Wednesday and announced it's launching traditional stock trading—zero commissions, 24-hour access five days a week, the whole nine yards. You can now buy Bitcoin (BTC) and Apple Inc. (AAPL) shares from the same platform.

Which immediately raises the obvious question: Can a company that built its reputation on crypto actually compete with Robinhood Markets Inc. (HOOD), which basically owns this space already? And should you care where your trading account lives?

The Numbers Tell An Uncomfortable Story

Let's talk about the elephant in the room. Robinhood's market cap sits around $107 billion right now. Coinbase? About $66 billion. That's a massive 60% valuation gap, and markets don't create gaps like that for no reason. Robinhood has years of experience executing stock trades, a gigantic user base that already trusts it for equities, and it managed to integrate crypto trading without breaking its core business.

The market's initial reaction was telling. Coinbase shares bumped up about 1% in after-hours trading Wednesday. Robinhood also climbed 1.5% after hours, which tells you investors aren't exactly panicking that Coinbase is about to steal Robinhood's customers overnight.

Timing matters here though. Coinbase shares have tanked nearly 8% over the past month as crypto markets tumbled, even though the stock's still slightly positive for the year. This is Coinbase's fundamental problem: when Bitcoin crashes, their revenue evaporates because they make most of their money from trading fees. Stock trading gives them a hedge against those brutal crypto winters that periodically destroy their business model.

The Tokenization Vision (Which Is Actually The Whole Point)

Here's where this gets interesting, and frankly, where Coinbase's actual bet lives. CEO Brian Armstrong told CNBC that traditional stock trading is just the opening move. What he really wants is tokenized equities—stocks that live on blockchain networks instead of going through traditional exchanges.

Think about what that would mean. Stocks trading 24/7, not just during market hours. Near-instant settlement instead of waiting two days for trades to clear. Lower costs because you're cutting out layers of middlemen. This isn't just incremental improvement, it's potentially real structural change to how markets work.

Coinbase is already seeking SEC approval for blockchain-based stocks. Early next year, they're rolling out perpetual futures for stocks outside the U.S.—derivatives that don't expire, a concept the crypto world pioneered that's now crossing into traditional finance.

But there's a catch, and one analyst put his finger right on it. Brian Huang from Glider, a Coinbase-backed portfolio manager, asked the obvious question: if tokenization is the future, why isn't Coinbase just building tokenized stocks from day one? Why launch traditional stock trading that looks exactly like what Robinhood already does?

His answer: regulatory realities probably forced Coinbase's hand. Getting SEC approval for tokenized equities remains a heavy lift, even with a more crypto-friendly administration coming in. So we're getting the bridge product first while Coinbase builds toward what they actually want to launch. Makes sense strategically, but it also means Coinbase is competing on Robinhood's turf using Robinhood's playbook instead of leveraging their supposed blockchain advantage.

What This Actually Means For Your Trading Account

Enough big-picture strategy talk. What does this mean for where you park your money?

The convenience factor is genuinely real. If you're already on Coinbase trading crypto, you can now buy Tesla Inc. (TSLA) shares in the same app with the same login. No more juggling Robinhood for stocks and Coinbase for Bitcoin. Your whole portfolio lives in one place, which simplifies tax reporting and account management.

24-hour trading five days a week matters more than you'd think. Bad news drops at 2am and tanks your stocks? You can sell immediately instead of watching helplessly until 9:30am Eastern. That's genuinely useful for anyone working weird hours, living overseas, or who just wants more control over when they trade.

Zero commissions are table stakes now, not a competitive advantage. Both platforms offer this, so execution quality becomes what actually matters. Robinhood's taken heat over the years for its order routing practices, especially during the GameStop chaos in 2021. Coinbase has a chance to compete on transparency here, but they'll need to prove they can handle volume without the platform falling over during volatile days.

The feature war benefits you regardless of who wins. Wednesday's announcement included way more than just stocks. Coinbase integrated Kalshi for prediction markets, letting you trade on election outcomes, sports results, and economic indicators for as little as $1. They launched Coinbase Advisor, an AI tool that helps build portfolios and explains how news affects your holdings. They rolled out improved futures trading and direct Solana token swaps through Jupiter.

These additions force Robinhood to respond with its own innovations, which means better tools and more features for traders on both platforms. Competition works exactly how it's supposed to.

Why That Valuation Gap Exists

That $40 billion difference in market cap between Robinhood and Coinbase isn't random. The market's telling you something important.

Analysts have been slashing Coinbase price targets recently. Barclays dropped theirs to $291 from $357. Mizuho cut to $280 from $320. The concern? Bitcoin ETF flows have weakened significantly, with BlackRock Inc.'s (BLK) iShares Bitcoin Trust seeing over $2.7 billion in outflows over five weeks. Standard Chartered even slashed its end-of-2025 Bitcoin price target to $100,000 from $200,000.

When institutional money leaves Bitcoin ETFs, it creates a vicious cycle for Coinbase. Lower Bitcoin prices mean less trading activity. Less trading means lower revenue. Lower revenue means analyst downgrades. It's ugly, and it's exactly why diversifying into stocks makes so much sense for Coinbase's business model.

But wanting to diversify and actually executing on diversification are very different things. Robinhood's proven it can deliver. Coinbase is still proving itself outside the crypto world.

Should You Actually Switch Platforms?

Honestly? Probably not yet. Don't rush to move your entire portfolio to Coinbase based on Wednesday's announcement. Watch how they execute over the next few months first.

Test the platform with small positions. See how order execution compares to what you're getting elsewhere. Check whether the platform stays stable during volatile market days. Look at whether the AI advisor actually provides useful insights or just generates generic advice.

The real value here isn't Coinbase suddenly becoming better than Robinhood overnight. It's the competitive pressure forcing both platforms to improve. More features, better tools, aggressive pricing on everything. That benefits you regardless of which platform you ultimately prefer.

Here's what actually matters for your decision. If you're deep into crypto and already use Coinbase for that, the convenience of managing stocks in the same app might be worth it. The 24-hour trading is legitimately useful if you work nights or travel internationally. The prediction markets and AI advisor are interesting additions that might become valuable once they mature.

But if you're happy with Robinhood and mostly trade stocks with occasional crypto on the side, there's no compelling reason to switch right now. Let Coinbase prove itself first.

The Evolution Nobody's Paying Enough Attention To

Financial markets are changing faster than most people realize. The line between crypto and traditional assets is blurring. Tokenization is moving from theoretical concept to actual reality. Platforms are racing to build infrastructure for this new financial system, and regulations are slowly catching up under what appears to be a more crypto-friendly administration.

Coinbase's announcement is one step in that broader evolution. Whether they succeed in becoming the everything exchange depends entirely on execution. Can they deliver stock trading that actually competes with established platforms? Can they navigate the regulatory maze to launch tokenized equities? Can they manage multiple complex businesses simultaneously without dropping the ball on any of them?

Those are open questions. What's not in question is that competition benefits traders. You get more choices, better features, and platforms that have to fight harder for your business. Use that to your advantage. Test both platforms. Move your money to whoever serves you best. The switching costs are low, so there's zero reason to be loyal to a platform that's not delivering.

Keep watching how this plays out over the coming months. The trading platform wars just got significantly more interesting, and you're the one who wins when companies are fighting this hard for your attention.

Back to News

Coinbase Wants to Be Everything to Everyone: Can It Actually Pull That Off?

MarketDash Editorial Team
21 hours ago
Coinbase just announced stock trading with zero commissions and 24-hour access, directly challenging Robinhood's dominance. But the crypto platform's real ambition is tokenized equities on blockchain—traditional stocks are just the warm-up act.

Coinbase Global Inc. (COIN) decided it wants to be your everything app for trading. The crypto exchange stood up at its System Update event in San Francisco on Wednesday and announced it's launching traditional stock trading—zero commissions, 24-hour access five days a week, the whole nine yards. You can now buy Bitcoin (BTC) and Apple Inc. (AAPL) shares from the same platform.

Which immediately raises the obvious question: Can a company that built its reputation on crypto actually compete with Robinhood Markets Inc. (HOOD), which basically owns this space already? And should you care where your trading account lives?

The Numbers Tell An Uncomfortable Story

Let's talk about the elephant in the room. Robinhood's market cap sits around $107 billion right now. Coinbase? About $66 billion. That's a massive 60% valuation gap, and markets don't create gaps like that for no reason. Robinhood has years of experience executing stock trades, a gigantic user base that already trusts it for equities, and it managed to integrate crypto trading without breaking its core business.

The market's initial reaction was telling. Coinbase shares bumped up about 1% in after-hours trading Wednesday. Robinhood also climbed 1.5% after hours, which tells you investors aren't exactly panicking that Coinbase is about to steal Robinhood's customers overnight.

Timing matters here though. Coinbase shares have tanked nearly 8% over the past month as crypto markets tumbled, even though the stock's still slightly positive for the year. This is Coinbase's fundamental problem: when Bitcoin crashes, their revenue evaporates because they make most of their money from trading fees. Stock trading gives them a hedge against those brutal crypto winters that periodically destroy their business model.

The Tokenization Vision (Which Is Actually The Whole Point)

Here's where this gets interesting, and frankly, where Coinbase's actual bet lives. CEO Brian Armstrong told CNBC that traditional stock trading is just the opening move. What he really wants is tokenized equities—stocks that live on blockchain networks instead of going through traditional exchanges.

Think about what that would mean. Stocks trading 24/7, not just during market hours. Near-instant settlement instead of waiting two days for trades to clear. Lower costs because you're cutting out layers of middlemen. This isn't just incremental improvement, it's potentially real structural change to how markets work.

Coinbase is already seeking SEC approval for blockchain-based stocks. Early next year, they're rolling out perpetual futures for stocks outside the U.S.—derivatives that don't expire, a concept the crypto world pioneered that's now crossing into traditional finance.

But there's a catch, and one analyst put his finger right on it. Brian Huang from Glider, a Coinbase-backed portfolio manager, asked the obvious question: if tokenization is the future, why isn't Coinbase just building tokenized stocks from day one? Why launch traditional stock trading that looks exactly like what Robinhood already does?

His answer: regulatory realities probably forced Coinbase's hand. Getting SEC approval for tokenized equities remains a heavy lift, even with a more crypto-friendly administration coming in. So we're getting the bridge product first while Coinbase builds toward what they actually want to launch. Makes sense strategically, but it also means Coinbase is competing on Robinhood's turf using Robinhood's playbook instead of leveraging their supposed blockchain advantage.

What This Actually Means For Your Trading Account

Enough big-picture strategy talk. What does this mean for where you park your money?

The convenience factor is genuinely real. If you're already on Coinbase trading crypto, you can now buy Tesla Inc. (TSLA) shares in the same app with the same login. No more juggling Robinhood for stocks and Coinbase for Bitcoin. Your whole portfolio lives in one place, which simplifies tax reporting and account management.

24-hour trading five days a week matters more than you'd think. Bad news drops at 2am and tanks your stocks? You can sell immediately instead of watching helplessly until 9:30am Eastern. That's genuinely useful for anyone working weird hours, living overseas, or who just wants more control over when they trade.

Zero commissions are table stakes now, not a competitive advantage. Both platforms offer this, so execution quality becomes what actually matters. Robinhood's taken heat over the years for its order routing practices, especially during the GameStop chaos in 2021. Coinbase has a chance to compete on transparency here, but they'll need to prove they can handle volume without the platform falling over during volatile days.

The feature war benefits you regardless of who wins. Wednesday's announcement included way more than just stocks. Coinbase integrated Kalshi for prediction markets, letting you trade on election outcomes, sports results, and economic indicators for as little as $1. They launched Coinbase Advisor, an AI tool that helps build portfolios and explains how news affects your holdings. They rolled out improved futures trading and direct Solana token swaps through Jupiter.

These additions force Robinhood to respond with its own innovations, which means better tools and more features for traders on both platforms. Competition works exactly how it's supposed to.

Why That Valuation Gap Exists

That $40 billion difference in market cap between Robinhood and Coinbase isn't random. The market's telling you something important.

Analysts have been slashing Coinbase price targets recently. Barclays dropped theirs to $291 from $357. Mizuho cut to $280 from $320. The concern? Bitcoin ETF flows have weakened significantly, with BlackRock Inc.'s (BLK) iShares Bitcoin Trust seeing over $2.7 billion in outflows over five weeks. Standard Chartered even slashed its end-of-2025 Bitcoin price target to $100,000 from $200,000.

When institutional money leaves Bitcoin ETFs, it creates a vicious cycle for Coinbase. Lower Bitcoin prices mean less trading activity. Less trading means lower revenue. Lower revenue means analyst downgrades. It's ugly, and it's exactly why diversifying into stocks makes so much sense for Coinbase's business model.

But wanting to diversify and actually executing on diversification are very different things. Robinhood's proven it can deliver. Coinbase is still proving itself outside the crypto world.

Should You Actually Switch Platforms?

Honestly? Probably not yet. Don't rush to move your entire portfolio to Coinbase based on Wednesday's announcement. Watch how they execute over the next few months first.

Test the platform with small positions. See how order execution compares to what you're getting elsewhere. Check whether the platform stays stable during volatile market days. Look at whether the AI advisor actually provides useful insights or just generates generic advice.

The real value here isn't Coinbase suddenly becoming better than Robinhood overnight. It's the competitive pressure forcing both platforms to improve. More features, better tools, aggressive pricing on everything. That benefits you regardless of which platform you ultimately prefer.

Here's what actually matters for your decision. If you're deep into crypto and already use Coinbase for that, the convenience of managing stocks in the same app might be worth it. The 24-hour trading is legitimately useful if you work nights or travel internationally. The prediction markets and AI advisor are interesting additions that might become valuable once they mature.

But if you're happy with Robinhood and mostly trade stocks with occasional crypto on the side, there's no compelling reason to switch right now. Let Coinbase prove itself first.

The Evolution Nobody's Paying Enough Attention To

Financial markets are changing faster than most people realize. The line between crypto and traditional assets is blurring. Tokenization is moving from theoretical concept to actual reality. Platforms are racing to build infrastructure for this new financial system, and regulations are slowly catching up under what appears to be a more crypto-friendly administration.

Coinbase's announcement is one step in that broader evolution. Whether they succeed in becoming the everything exchange depends entirely on execution. Can they deliver stock trading that actually competes with established platforms? Can they navigate the regulatory maze to launch tokenized equities? Can they manage multiple complex businesses simultaneously without dropping the ball on any of them?

Those are open questions. What's not in question is that competition benefits traders. You get more choices, better features, and platforms that have to fight harder for your business. Use that to your advantage. Test both platforms. Move your money to whoever serves you best. The switching costs are low, so there's zero reason to be loyal to a platform that's not delivering.

Keep watching how this plays out over the coming months. The trading platform wars just got significantly more interesting, and you're the one who wins when companies are fighting this hard for your attention.