Coinbase has started commission-free trading of stocks and ETFs for all U.S. customers on Tuesday. This is part of the company's strategy to be an 'everything exchange,' expanding on services that began in a limited capacity last December.

At the time of launch, more than 8,000 securities are already available, and starting from the launch, fractional share purchases are possible from a minimum of $1. Transactions can be funded not only in USD but also in USDC.

With this expansion, Coinbase is positioned to compete head-to-head with Robinhood, which has aggressively increased its cryptocurrency offerings, making zero-commission stock trading a core foundation.

How it works

Trading operates five days a week, 24 hours a day, but Coinbase explained that liquidity may decrease and spreads may widen during extended trading hours. Clearing, custody, and execution are handled not by Coinbase's own brokerage infrastructure but by Apex Fintech Solutions.

Coinbase One subscribers can earn unlimited USDC rewards on their trading balances.

A Coinbase spokesperson confirmed to The Block that zero-commission stock trading is a permanent policy, but did not disclose specific revenue models.

As part of the launch, Yahoo Finance plans to add a 'Trade on Coinbase' button to each stock and cryptocurrency asset page, allowing for one-click orders directly from Yahoo's research screen. Yahoo Finance users will also receive a 1-month free trial of Coinbase One Basic.

Read also: Vitalik Buterin Has Sold 17,000 ETH In One Month As Privacy Pledge Coincides With Ethereum's 37% Price Crash

Future roadmap

Coinbase plans to offer 24/5 trading on thousands of additional listings over the coming months.

This spring, Coinbase plans to launch perpetual stock futures through Coinbase Bermuda Ltd. targeted at traders outside the U.S., providing capital-efficient 24/7 exposure to U.S. stocks. This product will not be available to U.S. users.

In the long term, Coinbase has announced plans to offer tokenized stocks that can be traded 24/7 globally and used as on-chain collateral, subject to regulatory approval.

Profitability context

Coinbase's recent expansion into the stock business comes after the company recorded a net loss of $667 million in the fourth quarter, with both trading fee revenue and subscription revenue decreasing compared to the previous quarter.

The addition of stock trading is interpreted as an attempt by the company to reduce its high dependence on cryptocurrency trading volume and to mitigate the correlation of its stock, COIN, moving too closely with Bitcoin (BTC) price fluctuations.

Read next: El Salvador Launches Bitcoin Diploma 2.0 For Public Schools - A Year After Killing Bitcoin's Legal Tender Status