Coinbase Expands Beyond Cryptocurrency Amid Regulatory Scrutiny

Coinbase launches stock & ETF trading for US users while battling UK stablecoin rules that threaten a key revenue stream, as its Bitcoin premium turns positive.

The cryptocurrency exchange Coinbase is executing a strategic pivot, aiming to shed its image as a purely digital asset platform. Its latest move involves a significant push into traditional securities trading, directly targeting investors who want a unified hub for both crypto and conventional assets. This expansion comes as the company faces potential regulatory headwinds in a key market, specifically concerning its stablecoin operations.

A Push into Traditional Finance

In a bid to diversify its revenue streams and user base, Coinbase has launched stock and ETF trading for all its U.S. customers. The service, which went live on February 24, provides access to over 8,000 securities. Trading is available 24 hours a day, five days a week, and is promoted as commission-free.

The platform is designed with accessibility in mind, featuring fractional share purchases with a minimum investment of just $1. Users can fund their accounts using U.S. dollars or the USD Coin (USDC) stablecoin. Behind the scenes, Coinbase has partnered with Apex Fintech Solutions for clearing and custody services.

Further integrating its offerings, Coinbase has entered a collaboration with Yahoo Finance. A new "Execute" button now appears on Yahoo Finance research pages, directing users to complete trades via Coinbase. Yahoo Finance users are also being offered a one-month free trial of Coinbase's "One Basic" tier.

Regulatory Pressure in the UK Targets a Key Revenue Driver

As Coinbase broadens its product suite, it is simultaneously navigating potential new regulations in the United Kingdom that could impact a crucial part of its business. On February 25, CEO Brian Armstrong criticized a Bank of England proposal for stablecoin rules, labeling it as hostile to innovation. The draft framework includes holding limits of £20,000 for individuals and £10 million for corporations. Additionally, it proposes a 40% reserve requirement that would not accrue interest.

The stakes are high for Coinbase because stablecoins represent a major source of income. In 2025, the company generated $1.35 billion from its stablecoin operations, accounting for 19% of its total revenue. Stablecoin revenue for the fourth quarter of 2025 stood at $364 million, a period in which Coinbase reported a net loss of $667 million. In response to the proposed rules, the "Stand With Crypto UK" group has reportedly gathered more than 80,000 signatures on a petition; reaching 100,000 signatures before the March 3 deadline would trigger a parliamentary debate.

A Positive Shift in Crypto Metrics

Amid these developments, a key internal metric for Coinbase showed a notable shift this week. The platform's "BTC Premium Index," which measures the price difference for Bitcoin on Coinbase compared to other global exchanges, turned positive on February 25, registering +0.0525%. This ended a 40-day negative streak, reported to be the longest such period since 2023.

In equity markets, Coinbase shares are showing signs of recovery following significant declines in recent weeks. The stock is currently trading at €143.52, marking a daily gain of 4.26%. Despite this uptick, the share price remains notably lower on a 30-day view.

Looking ahead, market observers will focus on two primary factors: the user adoption rate of the new U.S. stock trading service, and whether the debate over UK stablecoin regulations gains sufficient political momentum before the March 3 deadline.