Coinbase (COIN +0.21%) was the first cryptocurrency exchange to list on the U.S. stock exchange back in 2021. Since then it has continued to innovate and drive new integrations of crypto and mainstream finance.
It is certainly making hay while the crypto sun shines with a number of cryptocurrency- and stablecoin-focused acquisitions. It is also developing its own blockchain in the shape of the Base network -- and recently said it was exploring the possibility of a Base network token.
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Read on to find out more about three of the many irons Coinbase has in the fire.
1. The Everything Exchange
Coinbase is working to make itself a one-stop shop for all assets. It wants to build on its existing mix of crypto trading, banking, and lending products to offer customers derivatives, equities, and commodities. Derivatives are particularly important because, as Coinbase Chief Executive Officer Brian Armstrong pointed out, they make up about 80% of all global crypto trading volume. It's also looking to throw its hat into the prediction markets ring.
There are a lot of moving parts, but the exchange is making progress. For example:
- In July, Coinbase launched perpetual futures trading in the U.S. Perpetual futures don't have a set expiration date, making them popular with investors who want a more flexible way to access leverage. Coinbase offers its U.S. crypto investors up to 10 times leverage on its perpetual futures.
- In August, Coinbase completed its acquisition of Deribit, a leading global crypto options exchange. Deribit customers accounted for more than 90% of the total $55.4 billion in Bitcoin (BTC 1.14%) open interest at the end of October, per The Block data. Deribit isn't yet available to customers in the U.S.
Coinbase also has its sights on tokenized stock trading, which would allow users to buy and sell blockchain-based tokens that represent ownership of equities. According to Reuters, the company is seeking Securities and Exchange Commission approval to launch in the U.S. Competitors have already rolled out tokenized stocks in other countries.
There are regulatory hurdles to overcome in several aspects of The Everything Exchange. But to some extent, Coinbase is pushing on an open door. SEC and Commodity Futures Trading Commission leadership have already talked about the appeal of a super app where customers can access a mix of investments.
NASDAQ: COIN
Key Data Points
2. Coinbase Business
Coinbase's "everything" approach doesn't only apply to investors. It also launched Coinbase Business, aimed at small and midsize enterprises to address some of the pain points faced by entrepreneurs. Market Reports estimates the small business banking market will be worth $165 million by 2033.
Coinbase Business promises instant settlements, interest generation on USDC (USDC 0.01%) balances, and a no-fee sign-up process. Plus, its integration with accounting software simplifies tax returns. By the end of October, it had already onboarded 1,000 businesses and said it had another 1,000 on the waitlist.
Coinbase is also extending its reach into crypto start-up financing with its acquisition of Echo, an on-chain early investment platform. The $375 million deal is another arrow in Coinbase's quiver. It helps crypto projects raise capital and also gives investors access to the world of private equity, one that may otherwise be out of reach.
Coinbase says the deal complements its July acquisition of Liquifi, a token management platform and will eventually help it achieve its wider tokenized asset vision. Right now, it makes Coinbase's ecosystem a popular choice for crypto entrepreneurs -- they can build their project and raise capital in the same place.
3. Payment partnerships with major names, including Citi
The Genius Act, which became law in July, has opened the stablecoin floodgates. By creating a framework for stablecoins, lawmakers removed some of the compliance headaches and paved the way for increased adoption. Stablecoins -- cryptocurrencies that are pegged to real-world currencies like U.S. dollars -- offer a fast and low-cost way to send money anywhere in the world.
J.P. Morgan Global Research estimates the stablecoin market could be worth as much as $750 billion in the next couple of years. Coinbase is leveraging its digital assets and experience in bridging assets on and off chain, paving the way for partnerships with several financial institutions and payment providers that want to integrate stablecoins. For example, at the end of October, it announced it was teaming up with Citigroup to develop its digital asset payments.
A strong base for 2026 and beyond
Coinbase is pushing hard to capitalize on the current surge in interest in crypto through a string of acquisitions and partnerships. If it can use the momentum to expand, it will help it to reduce its reliance on trading revenue and develop more predictable income streams. Transactions made up over 50% of its Q3 2025 revenue, which could be problematic if enthusiasm for crypto fades or we enter another crypto winter.Its efforts to become a stablecoin and tokenization partner and offer banking solutions to small businesses could help it become much more than a crypto exchange.
