Key facts
- Coinbase now offers U.S. retail users access to IPO shares through its app.
- Smart-ring maker Oura will be the first company offered through the service.
- Coinbase's allocation algorithm prioritizes investors who hold shares long-term.
- Selling IPO shares within 30 days may result in being barred from future IPO participation for 60 days.
- Coinbase plans to offer access to more IPOs as allocations become available.
Coinbase has launched a feature allowing eligible U.S. retail customers to request shares in initial public offerings at the IPO price before they trade publicly. The service, beginning with smart-ring maker Oura's Nasdaq debut this week, is facilitated through Coinbase Capital Markets (CCM), the company's FINRA-registered broker-dealer.
According to Coinbase, its allocation algorithm prioritizes investors who intend to hold shares long-term. The company warned that users selling IPO shares within 30 days of receiving allocations may be barred from future opportunities for 60 days. Coinbase plans to expand access to more IPOs as they become available.
Coinbase's stock (COIN) gained 5% at market open, trading around $204, and has risen over 13% in the past month.