Coinbase has rolled out its decentralized exchange integration, DeFi Mullet, in Brazil, enabling local users to trade tens of thousands of tokens directly through its app.
Key Takeaways:
- Integrating DeFi Mullet significantly increases token availability, potentially expanding from ~300 to tens of thousands over time.
- Trades are executed through a self-custody wallet with free network fees, while Coinbase filters out tokens that are malicious or high-risk .
- The launch is part of Coinbase’s broader strategy to become an “everything app,” with the goal of putting DeFi, tokenized assets, and centralized trading together in a single app.
On Wednesday, November, Coinbase began enabling decentralized exchange functionality for its Brazilian user base, marking a major step in its “everything app” strategy. The new feature, called DeFi Mullet, allows users to trade on Ethereum Layer‑2 and other DeFi platforms like Uniswap and Aerodrome without leaving the Coinbase interface.
The integration is built on the Layer‑2 network of Coinbase, Base, and simplifies the complex processes typically associated with decentralized finance. Users can trade directly from a self-custody wallet, free of network fees to remove transaction barriers. At the same time, the platform flags risky or fraudulent tokens, providing a safer environment for users to explore a broader range of assets.
Regulatory Compliance Drives the Expansion
Brazil has recently tightened its crypto regulations, requiring exchanges to obtain local licenses, report cross-border transactions, and maintain capital reserves of up to $7 million. Coinbase’s launch of DeFi Mullet reflects a strategy to comply with these rules while providing easier DeFi access.
Experts suggest that Brazil could act as a “regulatory laboratory” for the integration of DeFi into mainstream trading. By embedding non-custodial trading within a regulated platform, Coinbase offers a model that balances accessibility and compliance. This approach may serve as a blueprint for other countries looking to combine regulated crypto services with decentralized markets.
Market Reaction and Coinbase Stock Performance
Based on the latest market data provided by TradingView as of 11:30AM UTC, Coinbase Global Inc (COIN) shares were trading at approximately $257.29, showing a price decline of 1.72% over the past 24 hours. The stock reached intraday highs around $266.29 and touched intraday lows near $247.13, with a trading volume of 13,287,276 shares.
Coinbase (COIN) Stock Price and Chart — TradingView
Despite the Brazil expansion, the market saw a muted reaction, which suggests that investors eye on the long-term growth rather than instant revenue impact. With this DEX integration launch, it opens access to a population of over 215 million, potentially adding a significant new user base for Coinbase’s on-chain token offerings.
Strategic Implications for Coinbase and DeFi
Coinbase’s DeFi Mullet launch shows a significant transition for the exchange, highlighting its commitment to expanding token access while simplifying DeFi user interaction. By integrating thousands, specifically 10,000 tokens as per CoinTelegraph report, and making network fees free of charge, the exchange make retail adoption of DeFi easier and more convenient, with the potential of boosting user engagement and liquidity across its platform.
The launch also reinforces Coinbase’s vision of becoming a comprehensive crypto platform. Offering regulated, non-custodial trading in a familiar interface could accelerate the adoption of on-chain assets among users previously reluctant to navigate DeFi protocols independently.
Outlook
Coinbase plans to expand DeFi Mullet to other markets and blockchains while monitoring adoption and trading volumes in Brazil. Success under the country’s regulatory framework could lead to global exposure with similar integration. Analysts and experts also expect ongoing improvements to the platform’s token-risk filtering system in ensuring safe and seamless trading.
Summary
Coinbase launched DeFi Mullet in Brazil to let local users trade thousands of tokens via a self-custody wallet on Base and major DeFi platforms, aiming to balance expanded access with regulatory compliance and token-risk filtering.
