Coinbase Increases Bitcoin Holdings, Plans Tokenized Stocks In U.S.

Coinbase (COIN) said it is increasing its bitcoin (BTC) holdings and that it plans to launch tokenized U.S. stocks and prediction markets in the coming months, marking a significant expansion of its business as it seeks to diversify its revenue stream. In a post on X on Thursday, Coinbase CEO Brian Armstrong said, “Coinbase is long bitcoin. Our holding increased by 2,509 BTC in Q2, and we keep buying more." The news about Coinbase buying bitcoin isn't new, but it is definitely on trend, as many bitcoin treasuries have popped up recently to mimic Michael Saylor's Strategy (MSTR). However, the crypto exchange's CFO, Alesia Haas, previously made it clear that Coinbase isn't a BTC treasury company but rather a crypto operating company that invests in the sector. Read more: Coinbase Is Buying Bitcoin, Just Don’t Call It a Treasury Strategy. Separately, Coinbase confirmed to CNBC that it is preparing to offer tokenized versions of U.S. equities — digital representations of shares that can be traded on blockchain infrastructure. The products will allow users to buy and sell fractions of stocks around the clock, with faster settlement and lower costs than traditional equity markets. The company’s chief legal officer, Paul Grewal, announced in June that the company was seeking approval from the U.S. Securities and Exchange Commission (SEC) for the product. The announcement comes amid a broader push by financial institutions to explore tokenization — the process of putting real-world assets on blockchain — as a way to improve efficiency and accessibility in capital markets. BlackRock, Franklin Templeton, and JPMorgan have all made forays into the space in recent months. Coinbase’s top competitors, Robinhood and Kraken, have both recently launched tokenized stocks outside of the U.S. The exchange also plans to launch prediction markets, which would enable users to bet on future events' outcomes using crypto assets. These features are expected to roll out within months, pending regulatory clarity, Coinbase’s vice president of product, Max Branzburg, told CNBC on Thursday. “We’re building an exchange for everything,” he told CNBC. “Everything you want to trade, in a one-stop shop, on-chain. … We’re bringing all assets onchain — stocks, prediction markets, and more. We’re building the foundations for a faster, more accessible, more global economy.” Coinbase reported second-quarter earnings Thursday, missing estimates, as retail trading volume fell during the last quarter. Shares of the company are down about 6% in post-market trading.