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From Bybit Routes US Stock Orders Through Alpaca Securities

How could Bybit's expanded stock offering affect Coinbase?

Possible What happens if… A possibility worth considering, not a forecast.

Bybit's new stock access may increase competition for Coinbase Bybit is now utilizing Alpaca Securities' infrastructure to execute US stock orders for its users, allowing customers to buy over 1,000 US-listed stocks and ETFs using USDC. This move allows Bybit to offer regulated access to assets like Apple, NVIDIA, and Tesla, with Alpaca holding the underlying shares. As a major competitor, this expansion of regulated financial products by Bybit increases the competitive landscape for Coinbase, potentially drawing market share and user interest away from the established exchange.

Reported by 1 independent outlet Written Friday
Effect
Mild negative
How direct
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When
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The story
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How it reaches Coinbase

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The facts so far

As reported. Each one links to where it comes from.

  • Bybit is utilizing Alpaca's infrastructure for handling stock orders.aol.com
  • Bybit now lets users buy 1,000+ US stocks and ETFs with USDC.aol.com
  • Alpaca Securities, a FINRA and SIPC member broker, holds the actual shares.aol.com
  • Bybit offers popular stocks such as Apple, NVIDIA, Tesla, Micron Technology, and the Invesco QQQ Trust.aol.com

Why it matters

For Coinbase, the expansion of regulated stock access by a major competitor like Bybit represents a direct challenge to its market position. As a leading crypto exchange, Coinbase relies on attracting and retaining users who seek diverse financial products. Bybit's move into regulated US stock trading could divert user interest and trading volume, putting pressure on Coinbase's market share and revenue streams.

This development is part of a broader trend where crypto exchanges are integrating more traditional, regulated financial services. Bybit's partnership with Alpaca demonstrates a strategy to broaden access to financial markets while maintaining regulatory compliance, a move that forces competitors like Coinbase to continually innovate and expand their own offerings to remain relevant in the evolving digital asset ecosystem.

What we don't know yet

  • Will Bybit introduce competitive fee structures to attract users to its new stock offering?
  • How quickly will Coinbase respond to the increased competition in regulated US stock trading?

What would change this answer

Bybit lowers commissions or fees on eligible stock tradesThe negative effect on Coinbase could become stronger and faster, as lower costs are a primary driver for user migration.
Coinbase announces a similar regulated stock trading partnershipThe competitive pressure would likely stabilize, as both exchanges would be offering comparable services.

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The full eventBybit Routes US Stock Orders Through Alpaca Securities Everything aboutCoinbase

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.