Coinbase is giving eligible U.S. retail investors access to initial public offerings directly through its app, starting with smart-ring maker Oura. The new service allows customers to request shares at the official IPO price before public trading begins, pushing Coinbase further beyond cryptocurrency as it builds what it calls an “Everything Exchange.”
Coinbase Customers Can Request Shares Before Trading Begins
Eligible U.S. customers can now visit a dedicated IPO section inside Coinbase, select an available offering and submit a Conditional Offer to Buy once the expected price range has been announced.
Customers must fund their accounts to cover their requests. Once the IPO order book closes, available shares are distributed using Coinbase’s allocation methodology.
However, submitting a request doesn’t guarantee shares.
Depending on investor demand and how many shares underwriters make available to Coinbase, customers could receive their entire requested allocation, only part of it or nothing at all.
Oura Becomes Coinbase’s First IPO
The first company offered through the program is Oura, maker of the popular health-tracking smart ring.
Oura launched its IPO roadshow on September 21 and is seeking to raise as much as $2.2 billion by selling 50 million shares priced between $40 and $44. At the top of that range, the company would target a fully diluted valuation of approximately $15.6 billion.
Oura plans to trade on the Nasdaq under the ticker OURA.
The company reported $1.21 billion in revenue for the 12 months ending June 30, representing 74% year-over-year growth, according to Reuters.
Coinbase Wants Investors to Hold Their IPO Shares
Coinbase is also introducing rules designed to discourage customers from immediately flipping newly listed stocks.
Customers who sell IPO shares within 30 days of receiving them can be blocked from participating in additional Coinbase IPO offerings for 60 days. Repeat short-term sellers may also receive smaller or less frequent allocations in future offerings.
Coinbase says its allocation system is designed to prioritize investors interested in holding shares longer rather than traders attempting to profit from an immediate post-IPO price increase.
Coinbase Capital Markets Handles the Securities
The IPO service operates through Coinbase Capital Markets, the company’s FINRA-registered broker-dealer.
Coinbase Capital Markets participates as a best-efforts selling-group member and aggregates customer requests before routing them through Apex Clearing Corporation, which provides execution, clearing and custody. Coinbase Capital Markets isn’t underwriting the IPOs or holding the securities in inventory.
Customers must also complete an eligibility questionnaire because certain securities-industry professionals and other restricted persons can be prohibited from receiving IPO allocations under FINRA rules.
Coinbase Builds Its Everything Exchange
Adding IPOs represents another major step in Coinbase’s expansion beyond its original cryptocurrency exchange business.
The company has increasingly pushed into traditional financial products, including stock trading, prediction markets and derivatives. IPO access takes that strategy into the primary market, allowing Coinbase customers to potentially acquire shares before those stocks begin ordinary exchange trading.
Coinbase says it plans to offer additional IPOs as allocations become available through selling groups.
Starting with Oura gives Coinbase a chance to demonstrate that a platform built around crypto can also become a gateway into traditional capital markets. If the company continues adding IPOs, Coinbase could increasingly compete not simply as a crypto exchange, but as a broader investing platform where customers can access assets at multiple stages of their lifecycle.
