Coinbase enters IPO allocation market, challenging traditional brokerages

Coinbase announced on September 21 that eligible US users can apply for IPO allocations directly within its app, starting with the smart ring company Oura. Coinbase is participating as a 'selling group member' rather than an underwriter. This move is part of the exchange's 'Everything Exchange' strategy to increase user retention by offering stocks, ETFs, and IPO access alongside crypto. To prevent arbitrage, Coinbase implemented a policy that bans users who sell IPO shares within 30 days from participating in future IPOs for 60 days.