Coinbase used its latest 'System Update' Tuesday to push deep into territory long held by retail brokerages, rolling out an SEC-registered AI investment advisor, stock and ETF trading on its professional platform, and options markets for both equities and crypto. The bundle moves the exchange's product suite closer to a full-service brokerage model.
On-chain data suggests Coinbase's expanding offerings could drive higher trading volumes and fee revenue, though specific TVL changes or volume figures were not disclosed. The professional platform's addition of stock and ETF trading directly positions it against incumbents like Robinhood and Charles Schwab.
Benchmark-StoneX reiterated a $270 price target for COIN—60% higher than Coinbase’s current share price—following the announcements. An analyst called the exchange 'rapidly evolving,' signaling strong market confidence in the strategic pivot. The SEC registration of the AI advisor adds a layer of regulatory credibility that could ease adoption among institutional clients.
COIN shares have lagged this year, trading well below the $270 target, and the success of this brokerage push hinges on user adoption amid fierce competition. The crypto sector's broader market cap remains tightly correlated with Bitcoin, but Coinbase's diversification into equities could decouple its fortunes from crypto volatility.
Community reaction has been mixed, with some praising the innovation and others questioning the need for an AI advisor in a traditionally human-led advisory space. Competing platforms like Robinhood already offer similar hybrid stock-and-crypto services, putting pressure on Coinbase to execute quickly on user acquisition.