Coinbase took a major step into traditional finance on Wednesday, announcing it has registered an AI-powered investment advisor with the SEC. The exchange also said it will now offer stock and ETF trading on its professional platform, and is rolling out options markets for both equities and crypto. The suite of products was unveiled as part of Coinbase's 'System Update' event.
An AI advisor with a regulatory stamp
The AI investment advisor is registered with the SEC, a move that signals Coinbase's intent to operate squarely within the existing financial regulatory framework. The advisor is designed to provide automated portfolio management and investment recommendations, blending crypto assets with traditional securities. By going the SEC-registered route, Coinbase avoids the legal gray area that has tripped up other robo-advisors in the crypto space.
Stock and ETF trading on the professional platform
Coinbase's professional trading platform — aimed at active traders and institutions — will now support stocks and ETFs. That means users can trade shares of companies like Apple or Tesla alongside Bitcoin and Ether within the same account. The move puts Coinbase in more direct competition with brokers like Schwab and Robinhood, but with a crypto-native twist: settlement and custody are handled by Coinbase's existing infrastructure.
Options markets for both worlds
On top of equities, Coinbase is launching options trading — for both stocks and cryptocurrencies. Options give traders the right to buy or sell an asset at a predetermined price, a tool popular for hedging and speculation. By offering options on digital assets alongside traditional ones, Coinbase is trying to bridge the gap between the two asset classes. The exchange hasn't detailed which specific crypto options or strike prices will be available first, but the announcement confirms the functionality is live.
Coinbase's 'System Update' event came at a time when the broader market is still shaking off the effects of the 2025 crypto winter. The exchange has been under pressure to diversify revenue beyond trading fees, which have shrunk as volumes pulled back. Adding subscription-like AI advisory services and expanding into equities gives Coinbase more recurring revenue streams. The SEC registration also helps insulate the company from future regulatory crackdowns — the agency already approved the AI advisor, so there's less risk of a sudden enforcement action.
What remains unclear is how quickly users will adopt the new features. Stock and ETF trading is crowded, and options markets require a higher level of sophistication. Coinbase hasn't yet announced a timeline for rolling out the AI advisor to retail users outside the professional platform — that will likely come in the next quarter.
