Coinbase announces stock trading and new Kalshi-based prediction markets

Core Insights - Coinbase is expanding its services beyond cryptocurrency by allowing customers to trade stocks and engage in prediction markets through a partnership with Kalshi, indicating a shift towards becoming a broader financial platform [1][2][3] Group 1: Stock Trading Features - The new stock trading feature is a significant development for Coinbase, as it tests the company's ability to leverage its strong crypto brand to enter other financial sectors [3] - Initially, Coinbase will offer a curated list of major stocks and ETFs, with plans to expand to thousands of stocks in the coming months. Stock trading will be available 24/5 with no trading fees [4] - Coinbase plans to introduce perpetual futures for stocks early next year, which will be available outside the U.S. This derivative allows traders to hold options that do not expire [4] Group 2: Market Context and Future Prospects - The launch of stock trading coincides with a growing trend in the financial market towards tokenization, which involves converting various assets into tokens for blockchain trading, enhancing settlement speed and collateral efficiency [5] - Major firms like BlackRock are already offering tokenized versions of Treasury bills and money-market funds, suggesting that tokenized stock offerings could gain rapid traction, aligning with Coinbase's expertise in the crypto space [5]