Trading platform Webull (BULL) is teaming up with Coinbase (COIN) to bring crypto trading tools typically reserved for institutional investors to its Webull Pay app.
Webull Pay, which offers crypto trading for individual investors, will now run on Coinbase’s Crypto-as-a-Service (CaaS) platform.
That means investors using the app can access features like secure custody, staking, and stablecoin rewards, which is the same infrastructure used by hedge funds and asset managers.
“This collaboration unlocks powerful capabilities that will accelerate innovation on our platform,” Webull Pay CEO Stephen Yip said. “Together, we're building the future of digital asset trading.”
Coinbase said the two companies are also exploring opportunities to expand the service globally, leveraging Coinbase’s international footprint.
Shift away from Bakkt
The Coinbase deal marks a pivot for Webull Pay, which had been offering crypto services through Bakkt Holdings. That partnership will end in June, the same month the Coinbase-powered platform is set to launch.
Webull Pay was Bakkt’s largest crypto client, accounting for roughly 75% of its revenue in 2023 and 2024, according to PYMNTS. The end of the deal was seen as a major setback for Bakkt, which has struggled to hold on to large partners.
With the new setup, Webull Pay users who hold USDC will automatically be enrolled in Coinbase’s rewards program for the stablecoin unless they choose to opt out.
Webull recently made its Nasdaq debut through a SPAC merger that valued the company at $7.3 billion. Its stock is up 6.8% year-to-date.
Coinbase under fire after breach
While the company is celebrating a major win with Webull, Coinbase is under fite after a serious security breach.
On Thursday, Coinbase disclosed that cybercriminals convinced a “small group of insiders” to copy data from its customer support systems. The attackers demanded a $20 million ransom, which Coinbase refused to pay.
The breach affected less than 1% of Coinbase’s monthly active users, and the attackers did not gain access to customer funds or login credentials. Coinbase said it will reimburse any affected customers who were tricked into sending funds due to phishing or other scams.
In an SEC filing, the company said the breach could cost between $180 million and $400 million due to reimbursements and remediation.
Still, it hasn’t derailed Coinbase’s momentum. The company is set to join the S&P 500 when trading opens on May 19. Shares are up 7.3% this year.
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