Coinbase Launches Built-in DEX Trading Feature for Users

TLDR

• Coinbase’s DEX feature allows on-chain swaps for millions of tokens.
• Integration with 1inch and 0x enhances liquidity routing options.
• Daily DEX volume reached $12.8 billion, surpassing Coinbase’s trading volume.

Coinbase has launched a built-in decentralized exchange (DEX) trading feature within its main app for U.S. customers, excluding those in New York. This new functionality allows users to perform on-chain swaps of millions of tokens, focusing primarily on Base-native projects. The liquidity for these transactions is routed through aggregators such as 0x and 1inch.

Integration with Leading DEX Aggregators

Coinbase Inc., a major player in the cryptocurrency exchange landscape, is leading this initiative, driven by CEO Brian Armstrong, VP Product Max Branzburg, and Head of Trading Scott Shapiro. The integration includes support from 1inch, a prominent DEX aggregator. Sergej Kunz, co-founder of 1inch, commented on the partnership, highlighting the non-custodial swap products as “the ideal solution for centralized players.”

This partnership enhances Coinbase’s offerings by allowing seamless access to decentralized exchanges directly within the app. Aggregators like 1inch and 0x facilitate efficient liquidity routing, supporting Coinbase’s aim to improve on-chain infrastructure. The integration reflects Coinbase’s focus on providing users with a broader range of assets and more robust trading options.

Historical Context and Market Position

Established in 2012, Coinbase has grown to become one of the largest global cryptocurrency exchanges, known for both custody solutions and its retail/advanced trading platforms. The company has consistently advanced regulatory dialogue and mainstream adoption in the industry. In the past, Coinbase acquired Deribit for $2.9 billion to expand derivative offerings.

Founded in 2019, 1inch is a leader in DEX aggregation, offering cross-platform liquidity routing via its API. This collaboration demonstrates Coinbase’s strategy to position itself at the intersection of centralized and decentralized finance systems, potentially transforming the app into a comprehensive trading platform.

Affected Assets and Liquidity Sources

This DEX feature primarily impacts Base-native tokens, including specific cryptocurrencies such as Virtuals AI Agents, Reserve Protocol DTFs, SoSo Value Indices, Auki Labs, and Super Champs. Tokens like LINEA, SYND, and NOICE are also supported. Liquidity for these assets is sourced from platforms like Uniswap, Aerodrome, 0x, and 1inch.

Base, as an Ethereum Layer 2, remains central in this ecosystem, with most ETH and ERC-20 tokens available for trading. Due to regulatory restrictions, New York residents are currently unable to access these new features. The integration is expected to boost Total Value Locked (TVL) on Base and improve liquidity pools linked to newly available assets.

Current Trading Volume and Industry Comparisons

According to DefiLlama data, DEX trading volume is experiencing significant growth. The daily DEX volume was reported at $12.8 billion, compared to Coinbase’s $3.5 billion, with a total monthly DEX volume exceeding $407 billion. This integration may lead to increased user engagement with DEX tokens and indices, mirroring trends seen in other platforms such as HyperLiquid.

Similar ventures by Binance and OKX have also expanded market accessibility, showing a trend where centralized exchanges act as gateways to the decentralized financial ecosystem. The integration of on-chain swap features demonstrates a shift in the market strategy among leading exchanges.

Future Roadmap and Expansion Plans

Coinbase plans to gradually onboard more Base-native DEX tokens, with intentions to expand to other blockchain networks, starting with Solana. The company is also eyeing a global rollout of these features beyond the U.S., further bolstering its position in the crypto trading industry.

With no new funding rounds tied directly to this DEX launch, Coinbase’s existing partnerships, such as with PNC Bank for its Crypto-as-a-Service platform, reflect its commitment to involve traditional financial institutions. The integration emphasizes improving user experience by reducing friction with self-custody wallet options and sponsored network fees.

Brian Armstrong, CEO of Coinbase, remarked, “There are millions of assets available to US users… positive responses so far on the integration. This points to a strong emphasis on building onchain infrastructure.”

Brian Armstrong

“Together we’re enabling seamless access to DEXes within the Coinbase app,” said Scott Shapiro, Head of Trading at Coinbase.

Scott Shapiro