Coinbase Shakes Up Crypto: DEX Trading Goes Live for U.S. Users (Sorry, New York)

Coinbase just dropped a bombshell—decentralized exchange (DEX) trading is rolling out to its U.S. app users. But if you're in New York? Tough luck. The state's notorious regulatory wall stays up.

Why this matters: It's a power move. Coinbase is bridging the gap between centralized convenience and DeFi's wild west—while dodging New York's 'innovate last' approach to crypto.

The fine print: No numbers were harmed in the making of this update. Because let's face it—when has Wall Street ever needed hard data to make a decision?

Feature rollout comes as spot volume slumps

The launch of the DEX is timely. In the Q2 financial report, Coinbase experienced a decline in the amount of spot trading and revenue, and a rise in competition with low-cost outfits such as Kraken and Robinhood eating into its U.S. market share. Its stock has fallen since its July highs of over $400 to just $304, although it is up over 20% year-to-date.

The DEX rollout seems to target covering these losses through a burgeoning need to trade in a decentralized environment. In contrast with centralized exchanges, DEX platforms enable asset trading directly via their own wallets, which eliminates custodial risks and exposure to regulation in some jurisdictions. The company has not outlined a full schedule for global expansion, but noted that more regional rollouts and network support are part of the plan. 

Coinbase seeks $2 billion through convertible notes 

To support its operations amid tightening revenue and subsequent high expenditure on development, Coinbase is trying to raise $2 billion through a convertible note offering. The sale will be divided into two even tranches that will mature in 2029 and 2032, with an optional sale of another $300 million worth of bonds. As Cryptopolitan reported, the notes will only be sold to institutional investors on Rule 144A.

The company intends to enter capped call transactions on each tranche, a strategy often employed to lessen the effect of dilution should noteholders decide to convert the debt into stock. The news comes after a week where its shares plummeted more than 15%, heightening investor concerns.

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