Coinbase Australia plans to launch share trading, The Australian Financial Review reported.

The plan, which needs approval from ASIC, Australia’s markets regulator, would offer retail investors about 3,800 US stocks and derivatives.

The firm received an Australian Financial Services Licence (AFSL) in April.

In August, it launched perpetual contracts for wholesale investors. Retail users, however, can still only trade crypto.

Coinbase APAC managing director John O’Loghlen said younger people use AI and other tools to take in large amounts of data.

They also make frequent choices based on market cycles and trends. For this reason, he said, Coinbase needs one exchange for a wide range of assets.

Group-wide, bitcoin spot trading makes up 12% of Coinbase’s revenue. Coinbase says 12 individual products each generate over US$100 million in annualised revenue.

It recently reported a US$360 million loss amid weaker crypto trading. In May, it said it would cut 700 jobs globally.

O’Loghlen said Coinbase is also looking at collectibles for Australia. Prediction markets may follow later, subject to Australian policy. No such product is planned for now.

He said Coinbase sets strict limits. Its mandate is to expand economic freedom without harming consumers.

The same principle means it lists fewer tokens than some rivals and vets each one first.

He believes the regulator will act more firmly against offshore exchanges that seek Australian clients without an AFSL.

Regulation also shapes what Coinbase brings to Australia. O’Loghlen indicated it would likely avoid products requiring a banking licence, as these would not be commercially viable.

Holding capital onshore does not always suit a firm that draws on global liquidity, he said.

Featured image: Edited by Fintech News Australia, based on image by Parth Patel via pexels.