Coinbase is launching stock trading, prediction markets, and decentralized trading for Solana tokens as part of its strategy to become an all-in-one financial platform. Users will be able to trade stocks and crypto in a single app, with commission-free trading and plans for tokenized equities in the future.

Coinbase is set to become the first pure-play crypto firm listed on the S&P 500, replacing Discover Financial Services. Following the announcement, Coinbase's shares rose by 8% in after-hours trading, with a current price around $226, down from its all-time high of over $343. The listing is effective before trading begins on May 19.

Coinbase is set to expand its trading app to include tokenized stocks, derivatives, prediction markets, and other assets, aiming to create an "everything exchange" for U.S. users, with plans for international rollout. This move intensifies competition with platforms like Robinhood and aligns with recent pro-crypto regulatory changes in the U.S. as the company seeks to enhance consumer engagement and become a leading financial services app.

Coinbase is set to introduce its Mag7 + Crypto Equity Index Futures, combining major tech stocks like Nvidia and Google with BlackRock's Bitcoin and Ethereum ETFs. This new product aims to diversify Coinbase's derivatives platform and engage traditional investors through tokenized equities, starting trading on September 22.

Coinbase's stock fell 7% after the company reported disappointing Q2 earnings, posting $1.5 billion in revenue, which was below analysts' expectations of $1.59 billion. The decline in transaction revenue by 39% from the previous quarter reflects the company's vulnerability to crypto market fluctuations, despite its efforts to diversify its offerings.

Coinbase's stock reached a closing price of $394.01 per share, resulting in a market capitalization exceeding $100 billion for the first time. This milestone comes on the heels of Bitcoin hitting new all-time highs and a significant surge in Coinbase shares over the past month.

Coinbase is set to join the S&P 500, replacing Discover Financial Services, with the change effective before trading on May 19. The announcement comes as Coinbase's shares surged 8% in after-hours trading, despite its stock being volatile and underperforming this year compared to bitcoin. Additionally, Coinbase recently reported a net income of $65.6 million and plans to acquire crypto derivatives exchange Deribit for $2.9 billion.