Coinbase Expands Into Stocks as Armstrong Backs Tokenization
- Coinbase plans stock trading to build an all-in-one platform for crypto and finance users.
- According to Brian Armstrong, blockchain shares will eventually change market dynamics.
- Tokenized equities remain limited as lawmakers and regulators debate clear standards.
Coinbase has begun expanding beyond digital assets as it prepares to offer stock trading to its users. The move places the crypto exchange in direct competition with established brokerage firms such as Charles Schwab, Fidelity, and crypto-focused rival Robinhood. The strategy reflects a broader ambition outlined by Coinbase CEO Brian Armstrong, who has said the company aims to become an “everything exchange.”
Under that vision, users could eventually invest in stocks, prediction markets, and crypto products from a single platform. Fortune reported that Coinbase already has a complete range, including wallets, stablecoins, and even a credit card linked to Bitcoin. The company’s plan to add stocks involves both diversifying revenue and drawing in customers who prefer a single platform for access to both conventional and digital assets.
Yet the challenge remains significant. Robinhood, which has blended stock and crypto trading for years, has seen its share price outperform Coinbase in recent years, according to reporting from The Information.
Armstrong Frames a Long-Term Competitive Strategy
Armstrong has rejected the idea that Coinbase is late to the stock market. In recent interviews, he said the company follows a long-term approach rather than short-term performance metrics. He described Coinbase as a future bridge between traditional finance and blockchain-based markets.
In comments to CNBC, Armstrong stressed Coinbase’s existing strengths. He pointed to the company’s crypto custody scale and its reputation among digital asset users. He said Coinbase holds more crypto assets than any other company.
According to Armstrong, that position gives Coinbase an advantage as financial assets increasingly move onto blockchains. He stated that the company expects to support both conventional stocks and blockchain-based assets over time.
At the same time, Armstrong confirmed that Coinbase will initially offer stocks in a traditional format. The company plans to rely on Apex Fintech Solutions to manage backend brokerage operations. Stock access remains limited to a small group of users, though Coinbase plans a wider rollout in the coming weeks.
Tokenized Equities and Regulatory Tensions
A central part of Armstrong’s vision involves tokenized stocks, which represent ownership claims on real-world shares using blockchain technology. Several firms, including Robinhood and Kraken, already offer tokens tied to shares of companies like Apple and Tesla.
These products allow near-instant settlement and easier transfer across platforms. However, they currently function as derivatives rather than shares issued directly on a blockchain. Some companies have objected, saying they did not approve such representations of their stock.
Armstrong has said Coinbase will not pursue that structure for now. Instead, he anticipates a future where companies issue shares natively on blockchains, with full shareholder rights such as dividends and voting. He said such a system would require extensive coordination with the U.S. Securities and Exchange Commission and other regulators.
Related: Coinbase Warns It May Drop Support For CLARITY Act
Regulatory uncertainty remains a major factor. Lawmakers in Congress continue debating the Clarity Act, a bill intended to define how cryptocurrency fits into the U.S. financial system. The process has faced delays amid disagreements between crypto firms and banks.
Armstrong said Coinbase withdrew support for the bill after last-minute changes raised concerns about consumer protection and competition. He later adopted a more conciliatory tone, signaling continued engagement with lawmakers.
A Coinbase spokesperson told Fortune that the company expects all global markets and tradable assets to move on-chain over time. Armstrong has predicted that shift could begin within the next two years, starting with newer companies. He has said established firms may follow once blockchain-based share management proves its efficiency.
