Coinbase opens IPO allocations to US retail investors
- Coinbase now allows eligible US retail customers to request allocations in selected IPOs directly through its app.
- Oura’s IPO will become the first offering available through Coinbase Capital Markets as the exchange enters primary equity markets directly.
- Customers selling IPO shares within 30 days may face a 60-day participation ban, while repeat early sellers risk smaller, less frequent allocations.
Coinbase (COIN) is adding another product to its lineup, expanding from crypto and regular stock trading by giving eligible US retail customers access to Initial Public Offering (IPO) allocations through its app.
Coinbase brings IPO access to US customers via its app
The exchange stated Monday that customers can request shares in selected IPOs at the offer price before they begin trading on public markets. The service launched with Oura’s IPO, set for later this week, and is offered through Coinbase Capital Markets, the company’s FINRA-registered broker-dealer.
Coinbase described the move as another step toward building an “Everything Exchange,” with the platform seeking to give customers access to assets across different stages of their market lifecycle.
“Our US customers now gain early exposure to high-interest companies before they hit public exchanges,” Coinbase wrote in a statement.
Eligible customers can access active IPO deals through a new IPOs page in the Coinbase app. Once an expected price range is available, customers can fund their accounts and submit a “Conditional Offer to Buy” for the number of shares they want.
After the order period closes, available shares will be distributed based on Coinbase’s allocation methodology and credited to customers at the IPO price. However, Coinbase noted that allocations depend on the number of shares underwriters make available and overall customer demand, meaning orders could be filled partially or not at all.
Customers can also cancel and resubmit their offers during the open period if they want to adjust their requests.
Coinbase said its allocation system favors investors who intend to hold their IPO shares longer. Customers who sell IPO shares within 30 days could be barred from participating in IPOs for the following 60 days, while repeated early selling could lead to smaller and less frequent allocations.
Coinbase Capital Markets will participate in IPOs as a best-efforts selling-group member. The broker-dealer will aggregate customer orders and route them through its clearing partner, Apex Clearing Corporation, rather than underwriting deals or holding inventory.
“CCM acts purely as an agent on your behalf,” Coinbase said, adding that it does not take the opposite side of customer trades.
The company said it plans to expand the number of IPO opportunities available as additional selling-group allocations become accessible.
The move follows Coinbase’s launch of pre-IPO perpetual futures in June, initially offering a SpaceX-linked contract and allowing users to gain price exposure to private companies before a public listing without directly owning their shares.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
