Crypto Exchanges Push Into U.S. Stocks, Face Margin and Regulatory Squeeze

Crypto exchanges are pushing into U.S. equities as the prolonged digital-asset downturn squeezes trading volumes and fee income. Their pitch — lower entry barriers, streamlined onboarding and round-the-clock access — could help retain retail users seeking stocks alongside tokens. But U.S. brokerage is a mature, tightly regulated, low-commission business. Licenses, clearing, custody, margin lending and market-making infrastructure favor incumbents, limiting the scope for crypto platforms to reproduce the richer transaction margins historically earned in digital assets.

A July 2 report said Coinbase and Kraken are expanding stock services directly through licensed broker-dealer subsidiaries, while Binance, Bybit and Bitget rely mainly on partnerships with brokers or issuers. Coinbase posted about $1.4 billion of first-quarter 2026 revenue, down 21% from the previous quarter, and a $394 million net loss. Charles Schwab generated $6.5 billion of revenue in the same period, including $3.14 billion of net interest income, as Robinhood, Fidelity and Schwab also broadened their crypto offerings.