Coinbase plans to add tokenised real-world assets, stocks, derivatives, prediction markets, and early-stage token sales to its platform in the coming months, aiming to position itself as an “everything exchange.”
Making of a US Super App?
As reported by CNBC yesterday (Thursday), the American crypto exchange is planning to roll out the new products first to users in the United States, before expanding them to its international customer base “based on jurisdictional approvals.”
“We’re building an exchange for everything,” Max Branzburg, Vice President of Product at Coinbase, told the publication. “Everything you want to trade, in a one-stop shop, on-chain. … We’re bringing all assets on-chain — stocks, prediction markets, and more. We’re building the foundations for a faster, more accessible, more global economy.”
Coinbase also rebranded its wallet app to the “Base app”, aiming to become a super app similar to WeChat in China. Its plans to add the new products appear to be another step towards that goal.
Everyone Wants to Ride the Tokenisation and Prediction Markets Wave
The crypto exchange’s ambition to offer tokenised stocks is not new. Previous media reports revealed that the company is seeking permission from the Securities and Exchange Commission (SEC) to offer tokenised stocks. If approved, it would be the first platform to offer such products in the United States.
Tokenised stocks have been around for several years, particularly with the expanding product lines of crypto exchanges. However, the popularity of these products has grown recently, following Robinhood’s launch of tokenised stocks in late June.
Read more: Tokenised Stocks Are Here, but Do They Really Bring Added Value over CFDs?
Other crypto exchanges, including Kraken and Gemini, are also offering tokenised stocks, though only outside the US. London-listed CMC Markets is also considering adding tokenised stocks to its platform.
Coinbase is also looking to add prediction markets, which have gained significant popularity in recent years. These products allow people to take a yes-or-no position on the outcome of any event, whether it involves the performance of a financial instrument or the result of an election. These products resemble the controversial binary options, which are banned in most parts of the world.
While the offshore crypto platform Polymarket has emerged as a leader in prediction market betting, there are also regulated players in the United States, such as Kalshi. Now, many regulated brokers are beginning to add prediction markets to meet growing demand.
This article was written by Arnab Shome at www.financemagnates.com.
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