Coinbase’s Transformative Year in 2025
Coinbase had what I think was a pretty remarkable year in 2025. The company expanded far beyond its crypto exchange roots, moving into traditional finance in ways that surprised many observers. Perhaps the most significant development was their inclusion in the S&P 500 index. This wasn’t just symbolic—it meant mainstream equity portfolios now held Coinbase stock, which formalized their position in traditional market benchmarks.
But the path there wasn’t simple. The regulatory landscape shifted dramatically. Coinbase’s long-running dispute with the SEC finally ended when the agency dropped its lawsuit. Around the same time, federal policy moved forward with the GENIUS Act, which created nationwide standards for stablecoins. This regulatory clarity seemed to open doors that had been closed for years.
International Expansion and Product Growth
The company didn’t just focus on the U.S. market. They received authorization under the EU’s Markets in Crypto-Assets regime, which allowed them to provide regulated services across all European Union countries. This international expansion was complemented by a physical move—Coinbase relocated to Texas, a state considered more open to digital asset activity.
On the trading front, the exchange enhanced its U.S. platform to include futures products and perpetual-style futures. Their institutional division started offering 24/7 futures trading and cross-margining between spot and derivatives markets regulated by the CFTC. These moves seemed designed to compete more directly with traditional financial institutions.
Strategic Acquisitions and New Offerings
Coinbase’s acquisition strategy was particularly aggressive. They made the largest acquisition in the crypto market by purchasing Deribit, which significantly strengthened their derivatives product offerings. This wasn’t just about buying technology—it was about acquiring market position and expertise.
The company also launched products in non-trading areas. They added trading and prediction markets, including those powered by Kalshi, and introduced Coinbase One in the United States, which offers Bitcoin rewards on purchases. Perhaps more interesting was their move into crypto-backed lending, allowing users to borrow USDC backed by Bitcoin and Ethereum through Morpho, a Base product.
Infrastructure Development and Future Plans
Base remained Coinbase’s main on-chain infrastructure throughout 2025. More than 18 local-currency stablecoins were introduced on the network across Asia-Pacific, Latin America, and Europe, enabling routine payments. USDC payments were implemented at checkout on Shopify through Base, allowing internet merchants worldwide to settle on-chain.
The Base network achieved Stage 1 decentralization with the introduction of permissionless fault proofs and an independent security council, reducing dependence on a single operator. Coinbase’s developer team also created the x402 payment standard, which aims to provide native on-chain payments to developers and automated agents.
Looking ahead, CEO Brian Armstrong proposed plans for 2026 that include creating an all-encompassing financial application combining crypto, equities, prediction markets, and other asset classes. This suggests Coinbase sees itself not just as a crypto company, but as a comprehensive financial platform. The transformation from crypto exchange to mainstream financial institution appears to be well underway, though only time will tell how successful this broader strategy will be.
