Coinbase Brings Retail Access to IPOs for U.S. Traders

Coinbase is expanding access to primary financial markets by allowing U.S. retail traders to request shares in initial public offerings (IPOs). Beginning with Oura's IPO this week, eligible customers can submit a 'Conditional Offer to Buy' for shares at the offer price before open-market trading starts.

To participate, users navigate to the new IPOs page inside the Coinbase app and select an active deal page. They must fund their account to cover the cost of the requested shares before submitting a bid. Once the order book closes, available shares are allocated using an established methodology and booked directly into the user's account at the IPO price.

The allocation algorithm prioritizes investors who believe in what they're purchasing for the long haul. Selling IPO shares within the first 30 days may result in being barred from IPO participation for the following 60 days, with smaller and less frequent allocations given to those who repeat this behavior compared to investors who hold their IPO shares for longer durations.

Coinbase Capital Markets (CCM), a FINRA-registered broker-dealer, makes this access possible by participating in IPOs as a best-efforts selling-group member. CCM aggregates customer orders and routes them through clearing partner Apex Clearing Corporation.