In 2025, Coinbase executed a significant expansion beyond its core cryptocurrency exchange business, solidifying its position in the broader financial market through regulatory victories, strategic acquisitions, and the launch of diverse new products. A landmark achievement was the company's inclusion in the S&P 500, marking the first time a crypto-native firm entered this mainstream equity index and formalizing its status within traditional finance.
Regulatory progress was a cornerstone of the year's success. The Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase, permanently ending the high-profile legal dispute. Domestically, the passage of the GENIUS Act established nationwide standards for stablecoins. Internationally, Coinbase secured authorization under the European Union's Markets in Crypto-Assets (MiCA) regime, granting it the ability to offer regulated services across all EU member states. The company also relocated its headquarters to Texas, citing a more favorable regulatory environment for digital assets.
On the product front, Coinbase enhanced its U.S. trading platform with futures and perpetual futures products. Its institutional division launched 24/7 futures trading and cross-margining between spot and derivatives markets. The company's growth was further accelerated by acquisitions, most notably the purchase of Deribit, the largest acquisition in the crypto market that year, to bolster its derivatives offerings.
Coinbase diversified into non-trading financial services, launching Coinbase One in the U.S., which offers Bitcoin rewards on purchases. It introduced crypto-backed lending via Morpho on Base, allowing users to borrow USDC against Bitcoin and Ethereum collateral, a program that facilitated over 1 billion Bitcoin in loans. The app also integrated decentralized exchange (DEX) trading, providing direct access to on-chain markets on Base and Solana.
Base, Coinbase's Layer-2 network, saw substantial growth. It achieved Stage 1 decentralization through permissionless fault proofs and an independent security council. Over 18 local-currency stablecoins were launched on Base across the Asia-Pacific, Latin America, and Europe to facilitate payments. A key integration enabled USDC payments at checkout on Shopify for merchants worldwide. The developer team also created the x402 payment standard to enable native on-chain payments.
Looking ahead to 2026, CEO Brian Armstrong outlined plans to build an all-encompassing financial application combining crypto, equities, prediction markets, and other asset classes.
Analysts are divided on the strategy. Firms like William Blair and Goldman Sachs (which upgraded Coinbase stock to a "buy" rating) view the expansion into steadier revenue streams like derivatives, payments, and prediction markets as a long-term positive that could shield the company from crypto market volatility. However, Mizuho Securities maintains a neutral rating, noting that Coinbase's stock price remains heavily correlated to Bitcoin and reliant on retail trading fees, with risks balancing potential benefits.
