tl;dr
Coinbase expands decentralized exchange access to most U.S. users, joining rivals in the CeDeFi shift. The move highlights growing DEX adoption, regulatory hurdles, and the race to merge centralized and decentralized finance.
**Coinbase Expands Decentralized Trading Access, Joining Crypto Giants in CeDeFi Shift**
In a significant move toward bridging the gap between centralized and decentralized finance (DeFi), Coinbase has rolled out its decentralized exchange (DEX) service to nearly all U.S. users, marking a pivotal step in its product evolution. The feature, now live within the main Coinbase app, allows traders to swap tokens instantly, offering early access to emerging assets before they appear on centralized platforms. However, users in New York remain excluded due to state regulatory restrictions.
### A New Era for Coinbase
The DEX is powered by Base, Coinbase’s Ethereum layer-2 network, and leverages liquidity routes from 1inch and 0x to enable non-custodial token swaps. This means users retain full control of their wallets while trading, a key selling point for those prioritizing self-custody. Supported assets include projects like Virtuals AI Agents, Reserve Protocol DTFs, Soso Value Indices, Auki Labs, and Super Champs.
Funding for trades can come directly from a user’s Coinbase balance or USDC, with Coinbase absorbing gas fees. Instead, the company charges a “small, transparent” trading fee. The launch follows a limited August trial and represents Coinbase’s full-scale entry into on-chain trading for its retail user base.
### Competitors Follow Suit
Coinbase’s move comes as other major exchanges also embrace decentralized trading. Bybit recently launched Byreal, a Solana-based platform combining centralized efficiency with DeFi transparency, while BitMart and MEXC have introduced their own on-chain venues. These efforts reflect a broader industry trend: crypto traders are increasingly favoring DEXs for their transparency and control.
Data from CoinGecko underscores this shift. Decentralized exchanges now account for 28.5% of spot trading activity, up from 25% in Q2 2025. Meanwhile, centralized platforms saw trading volumes drop nearly 30% during the same period. The DEX-to-CEX volume ratio has climbed to 0.23, up from 0.13 in the prior quarter, signaling a growing preference for decentralized solutions.
### The Rise of CeDeFi
Youngsun Shin, head of product at Flipster, highlighted the accelerating convergence of centralized and decentralized finance, stating, “CeDeFi convergence will be a thing sooner than we all think.” For traders, this shift offers the best of both worlds: the reliability and speed of centralized exchanges paired with the transparency and self-custody of DeFi.
By integrating DEX capabilities into their apps, CEXs like Coinbase aim to retain users in an increasingly fragmented market. As liquidity spreads across networks, platforms that adapt to these preferences will likely gain a competitive edge.
### Looking Ahead
Coinbase’s expansion of decentralized trading not only broadens access to emerging assets but also signals a broader industry pivot toward hybrid models. With competitors racing to launch their own DEXs and traders flocking to decentralized platforms, the crypto landscape is evolving rapidly. As regulatory hurdles ease and technology advances, the line between centralized and decentralized finance will continue to blur—ushering in a new era of innovation and user empowerment.