Coinbase (Coin) operates decentralized exchange (DEX) trading within its main app for its US customers, with the exception of New York. The move is part of Crypto's broad ambition to turn the platform into “all apps.”
According to Max Branzburg, Vice President of Products at Coinbase, the new feature routes transactions on-chain through Dex Aggregators such as 0x and 1inch. By integrating DEX trading, Coinbase offers the ability for users to interact directly with blockchain-based liquidity pools without moving the platform off.
At launch, traders can discover and exchange a list of expanding basic native tokens. Its roster includes virtual AI agents, decentralized tokenization funds (DTFS) for reservation protocols, real-world asset products for centrifugal, index tokens for SOSO Value, and assets from Orchilab and Super Champions.
DEX transactions appeal to some crypto users. This is to allow for independent and unauthorized access. Instead of resorting to central exchanges to settle on orders, transactions are performed on the blockchain itself. For traders, this means access to broader assets, faster lists of new tokens, and sometimes lower fees. It also eliminates the need to trust intermediaries who hold the funds, but comes with their own risks, such as bugs in smart contracts and exposure to thinly volatile traded markets.
This update strengthens Coinbase's position as a gateway to both centralized and decentralized crypto markets. It also emphasizes that we continue to embed Web3 tools directly into the core platform, placing them in a way that captures users who want more control over how digital assets are traded and stored.
The move follows the relative success of platforms like Hyperliquid, a decentralized derivative exchange that has been etched into a volume of $11 billion over the past month. Users also offer non-mandatory options to essentially remove counterparty risks that have been spotlighted after the 2022 FTX's critical explosion.
Distributed exchange volumes have launched a marked upward trend across the bull market in recent years. Defillama data shows that the daily volume is $12.8 billion, a total of $3.5 billion for Coinbase, but its monthly Dex volume exceeds $407 billion.
