Coinbase Expands into Traditional Markets with IPO Access

Coinbase has expanded its reach into traditional markets by allowing US retail investors to participate in initial public offerings (IPOs) on its platform. The exchange will handle securities offerings through Coinbase Capital Markets, a FINRA-registered broker-dealer, with execution, clearing, and custody provided by Apex Clearing.

The move marks a significant step towards Coinbase's 'Everything Exchange' strategy, which aims to offer a broad range of financial products beyond cryptocurrency trading. Eligible US customers can now access a separate tab in the Coinbase app for active IPO deals, where they can make conditional offers to purchase shares at the IPO price.

Once the order book is closed, available shares will be allocated based on customer demand and underwriter supply. However, investors who sell their IPO shares within 30 days may face a 60-day ban from participating in future offerings, with frequent early selling potentially reducing allocation sizes or frequencies.