Coinbase Secures UK License for Stocks and Derivatives

Coinbase Secures UK Approval for Stocks and Derivatives Trading

Cryptocurrency exchange Coinbase has received regulatory approval to offer stocks and derivatives to its UK customers, marking a significant expansion of its product offerings in a key international market and furthering its ambition to become an “everything exchange.”

The company announced Tuesday that it has been granted an investment services authorization, also known as a MiFID license, by the Financial Conduct Authority (FCA). This license permits Coinbase to provide traditional financial instruments alongside its existing cryptocurrency services.

“Today marks our biggest ever expansion of Coinbase UK’s product suite,” the company stated in a social media post. “We’ve now secured an investment services authorisation in the UK, enabling us to soon offer both equities and derivatives. Another step to bringing the everything exchange worldwide.”

For the first time, retail users will be able to trade equities directly on the Coinbase platform. Institutional and advanced traders will gain access to derivatives, including perpetual futures across crypto, equity, and commodity markets.

This UK approval aligns with Coinbase’s strategic goal of establishing an “everything exchange”—a single application that integrates cryptocurrency, stocks, derivatives, prediction markets, payments, and savings. This move positions the company to compete with traditional brokerages, banks, and other fintech applications.

In the United States, Coinbase has already become the first centralized exchange authorized to offer crypto perpetual futures. It has also begun rolling out stock trading, prediction markets powered by Kalshi, and has plans for tokenized equities. Recently, the exchange introduced savings and borrowing products for its UK users.

The new authorization complements Coinbase’s existing UK e-money license and crypto registration. The company asserts that this combination makes it the “most comprehensively regulated crypto player” in the UK market. The approval comes as the UK finalizes its comprehensive cryptocurrency regulatory framework. The FCA published its proposed framework in late June, with a full regime expected to be implemented in October 2027. Coinbase highlighted FCA research indicating that approximately 7 million UK adults currently hold cryptocurrency.

Initially, derivatives trading will be limited to institutional and advanced traders. The FCA continues to prohibit the sale of crypto derivatives to UK retail investors, meaning equities will be the primary new offering for everyday users on the platform.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *