Coinbase has recently made a significant move by introducing decentralized trading to its U.S. customers, expanding access to one of its most innovative products to date. The company officially announced on Oct. 8 that its decentralized exchange (DEX) service is now available within the main Coinbase app for users across the country, with the exception of those located in New York due to state regulations.
With the new interface, traders can now swap tokens as soon as they are launched, providing them with early exposure to emerging assets before they are listed on centralized exchanges. This feature is powered by Base, Coinbase’s Ethereum layer-2 network, and will eventually support additional chains and regions as it continues to evolve.
Currently, the app enables users to trade Base-issued assets from various projects such as Virtuals AI Agents, Reserve Protocol DTFs, Soso Value Indices, Auki Labs, and Super Champs. Coinbase has integrated liquidity routes from 1inch and 0x, allowing for non-custodial token swaps without users having to relinquish control of their wallets.
Traders can fund their transactions directly from their existing Coinbase balance or USDC, with the company covering gas fees in exchange for a small, transparent trading fee. This launch follows a limited trial in August with selected testers and marks Coinbase’s full-scale entry into on-chain trading for its retail user base.
The introduction of the DEX by Coinbase comes at a time when other exchanges are also rolling out their decentralized trading platforms. Bybit recently unveiled Byreal, a Solana-based platform that combines centralized exchange efficiency with DeFi transparency. BitMart and MEXC have also launched their own on-chain venues in an effort to retain users within their trading ecosystems as liquidity becomes more fragmented across networks.
Data from CoinGecko indicates that decentralized exchanges now account for approximately 28.5% of spot trading activity seen on centralized platforms. In the second quarter of 2025, DEX volumes surged by over 25%, while centralized exchanges experienced a decline of nearly 30%. This shift has led to an increase in the DEX-to-CEX volume ratio, signaling a growing preference among traders for platforms that offer transparency and self-custody of assets.
In light of these trends, Youngsun Shin, head of product at Flipster, commented that the convergence of centralized and decentralized finance (CeDeFi) is likely to happen sooner than expected. By integrating a DEX directly into their platform, centralized exchanges like Coinbase aim to bridge the gap between DeFi control and the reliability and speed that users expect from traditional exchanges.
Overall, the move towards decentralized trading by Coinbase and other exchanges reflects the evolving landscape of the cryptocurrency market, where transparency, control, and efficiency are becoming increasingly important to traders. The integration of DEXs into established platforms is a step towards meeting these changing demands and providing users with a seamless trading experience.