Cryptocurrency platform Coinbase introduces direct trading on decentralized exchanges (DEX) for American users, commencing with native tokens based on the platform.

Cryptocurrency platform Coinbase introduces direct trading on decentralized exchanges (DEX) for American users, commencing with native tokens based on the platform.

In a strategic move to position itself for growth in the decentralized market, Coinbase has integrated decentralized exchange (DEX) trading directly into its main app. This groundbreaking development allows U.S. users (excluding New York residents) to trade Base-native tokens through an integrated self-custody wallet, with Coinbase covering all network fees[1][3][4].

The integration routes orders via DEX aggregators that scan liquidity across decentralized platforms like Aerodrome and Uniswap for optimal pricing[1][2][4]. Users can fund trades with their Coinbase balances or USDC, manage portfolios within the same interface, and access newly launched tokens immediately after they appear on the Base blockchain[1][3][4].

The benefits of this integration for U.S. users include:

• Access to millions of digital assets, far more than the roughly 300 previously available, enabling trading of newly created tokens almost instantly after launch[3][4].
• Simplified user experience by providing DEX access natively inside the Coinbase app—users no longer need to leave the platform or manage separate wallets or interfaces for decentralized trading[1][4].
• Enhanced security and user protection, as Coinbase blocks tokens flagged as malicious or fraudulent by third-party vendors[1][3].
• Cost efficiency, since Coinbase sponsors all network fees related to DEX transactions within the app[1][3].
• Broadening token availability and liquidity, benefiting traders and token issuers who gain rapid exposure to millions of Coinbase users without going through conventional centralized exchange listing processes[1][2][4].
• Future expansion plans to support more blockchains like Solana and extend DEX trading to other markets and countries beyond the U.S.[1][2][3].

Monthly DEX totals surpass $400 billion, indicating a growing market that Coinbase is preparing to capture by adding DEX access to its app[5]. The number of tradable assets for Coinbase users could expand from about 300 tokens to potentially millions once assets are indexed on-chain[3][4].

Coinbase aims to become an "everything app" for crypto, supporting both centralized and decentralized markets. The integration of DEX trading is a response to events like the FTX collapse, appealing to users seeking more control and fewer intermediaries[6].

[1] Coinbase Blog: https://blog.coinbase.com/coinbase-launches-decentralized-exchange-dex-trading-on-coinbase-app-6b86e2c865a3

[2] Decrypt: https://decrypt.co/87141/coinbase-dex-trading-launch-uniswap-0x-1inch

[3] CoinDesk: https://www.coindesk.com/business/2023/03/22/coinbase-launches-dex-trading-in-us-excluding-new-york/

[4] The Block: https://www.theblockcrypto.com/post/99420/coinbase-launches-dex-trading-in-us-excluding-new-york

[5] DefiLlama: https://defillama.com/chain/Base

[6] Bloomberg: https://www.bloomberg.com/news/articles/2023-03-22/coinbase-adds-dex-trading-to-app-in-bid-to-capture-growing-market

1. Coinbase's integration of decentralized exchange (DEX) trading into its main app allows users to trade various cryptocurrencies, such as bitcoin and other base-native tokens, with the convenience of an integrated self-custody wallet.
2. With DEX trading within the Coinbase app, users can access millions of digital assets, enabling them to trade newly created tokens almost instantly after launch, and manage their portfolios within the same interface.
3. Compared to centralized exchange listing processes, this integration benefits traders and token issuers by providing rapid exposure to millions of Coinbase users, broadening token availability and liquidity in the finance sector.
4. Looking to the future, Coinbase plans to extend DEX trading to other markets and countries while supporting more blockchains like Solana, as it strives to position itself as an "everything app" for cryptocurrency investors, especially amid events like the FTX collapse that emphasize the need for user control and fewer intermediaries in technology-driven investing.

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