Coinbase Launches In-App DEX Trading for U.S. Users, Starting With Base-Native Tokens

Coinbase has made a major move towards becoming a one-stop-shop for cryptocurrency enthusiasts by introducing decentralized exchange (DEX) trading directly into its main app. This new feature allows most U.S. customers to trade on-chain without having to leave the platform. However, users in New York are currently excluded from this offering. The addition of DEX trading has the potential to significantly increase the number of tradable assets available to Coinbase users.

The announcement of this new feature was made by Coinbase on Friday, with the initial rollout being limited to select U.S. customers, excluding those in New York. This move could see Coinbase expand its offerings from around 300 tokens to potentially millions of assets once they are indexed on-chain.

Instead of having to transfer assets to an external platform, Coinbase users can now place trades that are executed directly on blockchain-based liquidity pools. These trades will be routed through DEX aggregators like 0x and 1inch, accessing decentralized markets such as Uniswap and Aerodrome.

The new DEX trading feature allows users to swap a variety of Base-native tokens, including projects like Virtuals AI Agents, Reserve Protocol, Centrifuge, SoSo Value, Auki Labs, and Super Champs. More tokens will be added gradually, with the ultimate goal of encompassing the entire Base network.

One of the key advantages of DEX trading is faster listings for new tokens, self-custody of funds, and potentially lower fees. Coinbase is even covering network fees for the time being, simplifying transactions for users who may be unfamiliar with on-chain gas costs. Users can fund trades directly from their Coinbase balance and track portfolio performance within the app.

This move by Coinbase is part of its strategy to position itself as an “everything app” for crypto, catering to both centralized and decentralized markets. By integrating DEX trading, Coinbase is catering to users who seek more control and fewer intermediaries, especially after recent events like the collapse of FTX highlighted the risks of centralized custody.

While Coinbase will provide real-time risk and market data, it will not review or approve tokens listed on external DEXs. Instead, it will rely on third-party vendors to identify potentially malicious assets and restrict access accordingly.

This launch is expected to benefit token creators, who will now have almost instant access to Coinbase’s user base once their assets are indexed on-chain, bypassing the lengthy wait for centralized listings. Future updates will expand DEX trading to other blockchains, such as Solana, and to more global markets.

Coinbase’s move comes at a time when DEX activity is surging, with daily decentralized exchange volume surpassing $12.8 billion, well above Coinbase’s $3.5 billion in centralized trading. Monthly DEX totals have exceeded $400 billion. By integrating DEX access into its app, Coinbase is positioning itself to capture a larger share of this growing market.