speaking specifically to competition, say congress legalizes crypto.
coinbase is both an exchange (CME + NASDAQ) and a broker (IBKR / SCHWAB). this gives them a cost (spreads) advantage.
it is non-trivial to set up the tech infra to be an exchange for many tokens, they aren't fungible like stocks or commods. so there's a tech advantage.
speaking specifically to competition, say congress legalizes crypto.
coinbase is both an exchange (CME + NASDAQ) and a broker (IBKR / SCHWAB). this gives them a cost (spreads) advantage.
it is non-trivial to set up the tech infra to be an exchange for many tokens, they aren't fungible like stocks or commods. so there's a tech advantage.
sure, they'd be competition on btc and eth, as some would want to gain exposure to the largest tokens only. coinbase may lose brokerage share there. most brokers will end up routing the trades to coinbase, the exchange, which has the largest liquidity in the US.
robinhood, ftx.us, and binance.us, set up shop (and in robinhood's case allowed trading in ~10? crypto tokens) through the crypto boom and never made a dent in coinbase's market share during that period. worth asking why.
speaking specifically to competition, say congress legalizes crypto.
coinbase is both an exchange (CME + NASDAQ) and a broker (IBKR / SCHWAB). this gives them a cost (spreads) advantage.
it is non-trivial to set up the tech infra to be an exchange for many tokens, they aren't fungible like stocks or commods. so there's a tech advantage.
sure, they'd be competition on btc and eth, as some would want to gain exposure to the largest tokens only. coinbase may lose brokerage share there. most brokers will end up routing the trades to coinbase, the exchange, which has the largest liquidity in the US.
robinhood, ftx.us, and binance.us, set up shop (and in robinhood's case allowed trading in ~10? crypto tokens) through the crypto boom and never made a dent in coinbase's market share during that period. worth asking why.