Trading disclosure
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Learn moreMajor crypto exchange Coinbase (NASDAQ: $COIN) is giving U.S. retail investors access to initial public offerings (IPOs) through its platform.
The exchange said Monday that eligible customers can now request IPO allocations directly through the Coinbase app, starting with smart ring maker Oura's IPO this week. Investors will be able to request shares at the offering price before the stock begins trading publicly.
The new feature is being offered through Coinbase Capital Markets (CCM), the company's FINRA-registered broker-dealer. Coinbase said CCM participates in IPOs as a best-efforts selling-group member, collecting customer orders and sending them through clearing partner Apex Clearing Corporation.
More From Cryptoprowl:
Robinhood To Offer Share Redemptions And Voting Rights On Tokenized Stocks
Stablecoin Yield Ban Would Boost Bank Lending by Just 0.02%: White House
Investors can access active IPO deals through a new IPO section in the Coinbase app. Once an expected price range is available, customers can fund their accounts and submit a conditional offer to buy shares.
Allocations are not guaranteed because final allocations "depend on underwriter supply and total customer demand, requests may be filled in full, in part, or not at all," the exchange wrote. Orders can be canceled and resubmitted while an offering remains open.
Coinbase also said its allocation system will favor investors who hold their IPO shares for longer periods. Customers who sell shares within 30 days may be barred from participating in IPOs for the next 60 days and could receive smaller allocations in future offerings if they repeatedly sell shortly after listing.
The move comes as the company continues to broaden its services. The exchange has been building what it calls an "Everything Exchange," with the goal of allowing customers to access a wider range of financial assets from a single platform.
Earlier this month, Coinbase also partnered with payments infrastructure provider Moov to bring stablecoin payment, settlement and funding services to more than 1,000 U.S. community banks and credit unions.