Coinbase has secured U.K. authorization to offer traditional investment services alongside crypto, giving the exchange a wider product base in one of its largest international markets.
The new license allows Coinbase to offer equities and derivatives, including crypto, equity, and commodity perpetual futures for institutional and advanced traders. U.K. retail customers will also be able to trade equities on Coinbase for the first time.
COIN stock traded at $169.39, up 2.36%, after the announcement. The move comes as Coinbase pushes its “Everything Exchange” strategy, even as Baird warned that weak trading volumes could weigh on near-term revenue.
Coinbase Expands UK Product Offering
Coinbase said the U.K. authorization will let it offer traditional investment products alongside digital assets. The license sits alongside its U.K. e-money license and crypto registration.
The company received FCA crypto-asset registration in February last year. That approval allowed Coinbase to provide crypto and fiat services in the U.K.
The new license expands Coinbase’s reach beyond spot crypto trading. Institutional and advanced users will gain access to perpetual futures tied to crypto, equities, and commodities.
Retail users in the U.K. will also get access to equities trading. This marks the first time Coinbase will offer stock trading to U.K. customers.
MiFID License Supports “Everything Exchange” Plan
Coinbase has been expanding into products that go beyond standard crypto exchange services. The company has described this strategy as building an “Everything Exchange.”
The plan includes stocks, crypto derivatives, tokenized products, prediction markets, and consumer finance tools. U.S. users already have access to stock and ETF trading.
Eligible non-U.S. users can also trade USDC-settled stock perpetual futures on large-cap names such as Apple, Microsoft, and Tesla. Coinbase has said it plans to offer tokenized stocks backed one-for-one by U.S. equities to eligible non-U.S. users.
Those tokenized stock products are intended to give investors exposure to the underlying shares, including dividends. Availability will depend on local rules and product approvals.
UK Crypto Rules Still Developing
The U.K.’s full crypto framework is expected to take effect in October 2027. Coinbase’s latest approval gives the company a regulated route to expand before that framework is fully in force.
The authorization may help Coinbase compete with brokers, fintech firms, and crypto exchanges offering multi-asset trading products. The company is also expanding overseas as U.S. crypto legislation remains uncertain.
Baird said delays around the CLARITY Act could increase competition from banks and fintechs operating under established rules. The firm said the bill is unlikely to pass before the November midterm elections due to disputes over ethics and crypto issuance.
Regulatory timing remains important for Coinbase. Clearer rules could support crypto market activity, while delays may leave large financial firms with an advantage in traditional investment products.
Baird Warns on COIN Revenue and Valuation
Baird named Coinbase a Bearish Fresh Pick, citing weak trading volumes and valuation risk. Analyst David Koning said second-quarter revenue could miss Street estimates by about 5% to 6%.
Koning wrote, “April and May were two of the slowest months in the past few years.” He also said recent volume improvement may reflect Bitcoin selling rather than a lasting rebound in trading demand.
Baird said Coinbase trades at about 35 times estimated 2027 earnings per share. The firm cut its COIN price target to $142 from $160.
The firm also outlined a bear case in which COIN could fall to $75 to $90 if 2027 earnings per share drop to $3 and the valuation multiple compresses.
