Coinbase Ambition: From Cryptocurrency Exchange to "All Things On-Chain" Financial Giant

While Wall Street is still observing cryptocurrencies, Coinbase has quietly laid out a revolution that could reshape the global financial system. CEO Brian Armstrong recently revealed that this crypto giant plans to open stock trading to all customers within the next few weeks, and aims to usher in a new era of tokenized stocks within two years, ultimately realizing the grand vision of "all tradable assets on-chain."

1. Stock Trading Is Just the Beginning: Coinbase's "Trojan Horse"

Although Coinbase entered the traditional stock market later than others, its strategic intent is far from simply copying brokerage models. Armstrong clearly stated that the current stock trading service provided via Apex Fintech Solutions' backend is only a transitional solution. The ultimate goal is tokenized equity—issuing stocks natively on the blockchain.

Behind this layout is Coinbase’s clear recognition of its own advantages: deep expertise in cryptocurrencies, the most trusted brand image in the crypto space, and its bridging role connecting traditional finance with cryptocurrencies. Unlike traditional brokerages, Coinbase sees two core values in stock trading: real-time settlement and cross-exchange liquidity.

According to Fortune, this service is currently only available to a select few users but plans to expand to all customers in the coming weeks. This means tens of millions of Coinbase users will be able to trade US stocks like Apple and Tesla directly with crypto assets, without cumbersome fiat currency transfers.

2. Armstrong’s "All-Things Exchange" Vision

In a recent in-depth interview, Armstrong proposed a more ambitious concept: the "Everything Exchange." This is not just a slogan but the strategic core of Coinbase’s five-year plan.

2.1 The Inevitable Trend of Asset On-Chain

Armstrong predicts that within the next two years, the transition of assets onto the chain will officially begin. This judgment is based on three key signals:

1. Regulatory Turning Point Has Arrived: The US GENIUS Act has been passed, and the Market Structure Bill is advancing in the Senate. The US government has also established a strategic Bitcoin reserve. Armstrong revealed that Coinbase is providing crypto services to about 140 government entities.

2. Institutional Funds Are Poised: Armstrong openly stated that large institutions have indicated that "once regulation is clarified, they will increase Bitcoin allocations from 1% to 5%-10%." Companies like MicroStrategy and MARA continue to increase holdings. Currently, US entities alone hold 65% of the world's Bitcoin reserves.

3. Mature Technical Infrastructure: The Base network has become a leading Layer 2 solution, with quarterly revenue reaching tens of millions of dollars. USDC stablecoin contributed up to $800 million in revenue to Coinbase over the past year, demonstrating the commercial potential of on-chain finance.

2.2 The Revolutionary Advantages of Tokenized Stocks

Tokenized stocks are not just digital securities; they fundamentally reconstruct the nature of assets:

• 24/7 Trading: Breaking the T+1 settlement and trading hours of US stocks

• Global Liquidity: Investors from any region can participate without US broker accounts

• Programmability: Implementing innovative governance such as "only long-term holders have voting rights" via smart contracts

• Fractured Investment: Lowering investment barriers for high-priced stocks

Bitwise predicts that the market size for tokenized real-world assets will grow from the current $13.7 billion to $50 billion by 2025. DTCC has partnered with digital asset firms to pilot US Treasury tokenization on the Canton network, significantly improving settlement efficiency.

3. Current Market: The "Perfect Storm" of the Crypto Bull Market

Coinbase’s strategy is not a castle in the air but built on an unprecedented strong cycle in the current crypto market.

3.1 The New Narrative After Bitcoin Surpasses $100,000

In January 2025, Bitcoin hit a new high of $109,140. Although Trump’s inaugural speech did not mention cryptocurrencies, causing a short-term correction to $95,661, institutional enthusiasm remained undiminished. In early January, US spot Bitcoin ETF weekly net inflows reached $1.9 billion, far exceeding the 13,850 BTC mined that month, creating a severe supply-demand imbalance.

Wall Street’s predictions are becoming more aggressive: Bitwise, Standard Chartered, and VanEck all believe Bitcoin could reach $180,000–$200,000 by 2025. Armstrong himself boldly predicts that by 2030, BTC will reach $1 million, reasoning that "in five to ten years, most wealth management firms or sovereign funds will allocate 1%-10% of their assets to crypto."

3.2 Coinbase Stock Performance: Market Is Pricing in a Premium

Bitwise’s 2024 end-of-year top ten forecast explicitly states: Coinbase’s stock price will surpass $700 in 2025, overtaking Charles Schwab to become the most valuable brokerage globally. This forecast is driven by three major catalysts:

4. Stablecoin Business: Revenue up 31% year-to-date, reaching $162 million

5. Base Network: Leading Layer 2 with quarterly revenue in the tens of millions of dollars

6. Staking and Custody: Annual revenue expected to exceed $1 billion, up 106%

Despite earnings falling short of expectations in Q2 2025 due to decreased trading volume, Coinbase’s stock remains resilient, currently around $382, close to the 52-week high of $444. The market clearly values its long-term strategic potential more than short-term performance fluctuations.

4. Challenges and Risks: Obstacles on the Path to the "On-Chain World"

Any revolutionary change comes with risks. Coinbase’s "All Things On-Chain" strategy faces three major challenges:

4.1 Regulatory Uncertainty

Although the US regulatory environment has improved significantly, Armstrong admits that "the risk list is shrinking but not gone." Technical issues such as post-quantum cryptography upgrades still need resolution. Additionally, the prediction that 150 long-tail fiat currencies worldwide could be replaced by BTC and USDC may trigger resistance from some countries.

4.2 Escalating Security Threats

Armstrong rarely reveals the industry's dark side: North Korean hackers graduate 500 new members each quarter, specializing in attacking crypto platforms; Coinbase customer service has faced bribe offers worth hundreds of thousands of dollars; the company has posted a $20 million bounty to catch attackers. As the scale of assets on-chain expands, security will become the single biggest risk point.

4.3 Deteriorating Competition Landscape

Coinbase faces not only native crypto exchanges like Binance and OKX but also traditional financial giants like Charles Schwab and Fidelity. The latter are accelerating their deployment of crypto custody and trading services. Armstrong’s response strategy is open standards and gradual decentralization—Base network is progressing from phase zero decentralization toward phase two, ensuring everyone can build applications in a fair competitive environment.

5. The Future Is Here: The "Paradigm Shift" in Financial Systems

Armstrong’s ultimate vision goes far beyond stock tokenization. He hopes Coinbase will become the first company to pay dividends to shareholders in Bitcoin, which is not just a marketing gimmick but a declaration to the world: crypto assets are now legitimate as part of corporate capital structures.

A deeper transformation lies in financial democratization. Armstrong points out that the current qualified investor system, "only the wealthy can become even wealthier," is a step backward. He advocates replacing it with financial literacy tests. He also proposes establishing ten federal economic zones in the US as regulatory sandboxes for crypto, biotech, and other fields.

Behind these radical ideas is a firm belief: cryptocurrencies are devouring financial services. As he says, "The best consumer protection sometimes is competition. If one company is terrible, the best solution is to let another company offer a better choice."

We are at a turning point in financial history

From Bitcoin’s genesis block in 2009 to the on-chain asset wave in 2025, cryptocurrencies have taken 16 years to move from the fringe to the mainstream. Coinbase’s "All Things Exchange" strategy is essentially reconstructing the $4 trillion global financial assets using blockchain technology.

For investors, this is both a historic opportunity and full of unknown risks. As Armstrong advises: "The crypto space has never been as good as it looks, nor as bad as it looks. You must stick with it long-term through ups and downs."

Interactive Topics:

• Do you think tokenized stocks will become a reality within two years?

• If given a choice, would you prefer holding Bitcoin-denominated dividends or USD dividends?

• Between Coinbase, Binance, and traditional brokerages, whom do you trust more to manage your stock assets?

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Note: The above predictions are personal opinions and do not constitute investment advice. The cryptocurrency market is highly volatile; please make decisions cautiously. #COINBASE $BTC