Coinbase and Gemini Shatter Crypto Boundaries: Dive into Stocks, Payments, Prediction Markets, and Stablecoins
The crypto giants aren't just playing defense—they're launching a full-scale invasion of traditional finance.
From Trading Pits to Prediction Markets
Forget the old labels. Coinbase and Gemini are executing a radical pivot, morphing from niche crypto exchanges into sprawling financial ecosystems. The playbook is simple: leverage their tech-savvy user base and regulatory groundwork to capture adjacent markets. It's a land grab, and the territory is everything Wall Street used to own.
Stocks, Payments, and Everything in Between
The expansion hits multiple fronts. Stock trading brings familiar assets to crypto-native portfolios, blurring the line between 'traditional' and 'digital' investor. Payments infrastructure aims to bypass creaky banking rails—think instant settlements without the three-day wait. Then come the prediction markets, turning speculation into a product, and stablecoins, the boring but essential plumbing for the whole operation.
One platform to rule them all? That's the bet. They're banking on convenience winning over loyalty to legacy brokers and banks. It's a cynical but classic finance move: when your core market gets volatile, diversify into everyone else's business. The endgame isn't just surviving the next crypto winter—it's making the concept obsolete by building a financial hub that works regardless of Bitcoin's daily mood swings.
Gemini expands with cards, predictions, and global growth
Coinbase is not alone. Gemini, another major crypto exchange, is also seeking new revenue streams. Last month, Gemini launched its own prediction market, allowing users to place bets on future events.
Earlier research by Mizuho Securities found that Gemini’s payment card is also contributing to the company’s growth. The research found that the card creates a “flywheel effect,” meaning that many people who receive the card later also start using the Gemini exchange. Approximately half of Gemini card users eventually transition to exchange users.
William Blair also spoke positively about the stablecoin market, including Gemini’s payments rival Circle, which issues the USDC stablecoin. The firm stated that USDC’s success is more a matter of timing than its effectiveness. As more businesses adopt digital currencies for payments and settlements, stablecoins are likely to become increasingly important.
Goldman Sachs also mentioned Gemini indirectly when discussing competition in the crypto space. Like Coinbase, Gemini faces risks from market swings and changing regulations, but its efforts to expand beyond simple trading are viewed as a positive sign by some analysts.
Wall Street is divided on crypto exchange prospects
Not everyone is confident about crypto exchanges. Mizuho Securities shared a more mixed view in a separate report.
Mizuho surveyed both retail and institutional investors and found that many prefer fintech companies over crypto companies for 2026. Opinions about crypto-native exchanges, such as Coinbase and Gemini, were sharply divided. Some investors expect them to be top performers, while others think they could be among the worst.
Due to this uncertainty, Mizuho maintained a neutral rating on Coinbase. The firm stated that Coinbase’s stock still closely tracks the price of bitcoin and relies heavily on fees from retail traders. While Mizuho acknowledged that Coinbase could benefit from market volatility, cost control, and interest income linked to USDC, it believes that the risks balance these positives.
On the other hand, Mizuho kept an outperform rating on Gemini. The firm highlighted Gemini’s growing user base, opportunities for international expansion, and its all-in-one trading app. Still, it warned that Gemini is not immune to danger, especially due to market volatility and potential regulatory changes.
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