All assets on-chain! Coinbase, the largest cryptocurrency exchange in the U.S., is planning an ambitious strategic transformation.
According to media reports, the company's CEO Brian Armstrong recently announced on social platform X that Coinbase will become the 'exchange for everything', planning to move all assets, including stocks, derivatives, and prediction markets, onto the blockchain for trading.
As Coinbase's Vice President of Products Max Branzburg stated: a 'one-stop exchange for everything' is being built, with all transactions occurring on-chain. Analysts suggest that the core idea of this strategic transformation is to redefine the boundaries of digital asset trading.
Coinbase believes the current policy environment creates favorable conditions for innovation and broader market adoption. Barclays analysts pointed out that although the timeline for these new opportunities to translate into meaningful revenue for Coinbase remains unclear, regulatory support is continuously increasing.
'Exchange for Everything' strategic layout
Coinbase CEO Brian Armstrong emphasized the long-term logic of this expansion on social platform X:
'Coinbase is becoming the exchange for everything. All assets will inevitably move on-chain, so we want to have everything you want to trade in one place.'
Coinbase Vice President of Products Max Branzburg clearly stated in an interview:
'We are building an exchange for everything. Everything you want to trade, a one-stop shop, all on-chain. We are putting all assets on-chain—stocks, prediction markets, and so on. We are laying the foundation for a faster, more accessible, and more globalized economic system.'
This new concept of an 'exchange for everything' will include tokenized physical assets, stocks, derivatives, prediction markets, and early-stage token sales. New products will be launched in the coming months, initially aimed at U.S. users, followed by 'gradual international rollout based on jurisdictional approval.'
Branzburg particularly emphasized that tokenized stocks are the next key step, describing the $100 trillion traditional stock market as a great opportunity for on-chain transformation.
Reports indicate that Coinbase's expansion plans go beyond traditional cryptocurrency trading pairs, aiming to establish an alternative to traditional brokerage firms. The company plans to provide a unified platform for users to trade diversified assets, with all transactions being settled and secured on-chain.
This expansion initiative puts Coinbase in more intense competition with Robinhood, Gemini, and Kraken. Notably, these competitors have recently opened tokenized stock products to users outside the U.S.
Coinbase's CEO Brian Armstrong has set the goal: to make Coinbase a top financial services application within the next decade.
Improved regulatory environment boosts expansion
Recent changes in the regulatory environment have encouraged Coinbase to accelerate its diversification process. Analysts note that as legislation related to stablecoins brings clear guidelines and the regulatory framework for digital assets improves, the company sees an increasingly favorable environment for innovation and broader adoption.
Barclays also stated that despite a 26% drop in revenue in the second quarter, Coinbase's latest shareholder letter describes these developments as growth catalysts. Meanwhile, revenue from stablecoin activities grew by 12%, partly offsetting weaker trading income. The company expects subscription and service revenue to steadily increase in the next quarter.
While retail and institutional investor trading is central to Coinbase's business, the company is vigorously pushing to enhance consumer engagement through new services, fully leveraging the new cryptocurrency-supportive policies introduced in the U.S.
Two weeks ago, the company launched the 'Base App', aimed at creating a Western version of a WeChat-style super app.
Analysts believe this series of initiatives indicates that Coinbase is transforming from a purely cryptocurrency trading platform into a comprehensive financial services provider, attempting to redefine the boundaries of digital asset trading in the new regulatory environment.
Barclays analysts noted that while the timeline for these new opportunities to translate into meaningful revenue for Coinbase is still unclear, there is no doubt that the regulatory environment is becoming increasingly supportive.
