Coinbase Gives Individual Investors Access to IPOs

Dow Jones09-21 20:58

Coinbase Global, the largest U.S. crypto exchange, said Monday that it is allowing users to request shares of companies ahead of their stock-market debuts.

Starting this week, traders will be able to request shares of upcoming initial public offerings at offer price in the Coinbase app. Their requests may be filled in full, in part or rejected depending on demand. Eligible users can start with smart-ring maker Oura's IPO this week.

Coinbase said its allocation algorithm will prioritize long-term investors.

The move is another example of Coinbase's ambition to become an "everything exchange." Since last year, the company has been expanding outside of crypto, adding products from stock trading to prediction markets. It also recently sought regulatory approval to list perpetual futures tied to individual large-cap U.S. stocks.

Individual investors are increasingly clamoring for and getting bigger allocations of company shares in IPOs than ever before. For example, SpaceX allocated around 20% of its $75 billion offering to individual investors.

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