Coinbase Global Inc. is set to become a part of the S&P 500 index, taking over the spot left by Discover Financial Services. The change will be effective at the start of trading on Monday, May 19, as announced by S&P Dow Jones Indices.

This adjustment follows Capital One Financial's acquisition of Discover Financial, which is nearing completion pending certain conditions.

Coinbase Stock Surges After S&P 500 Inclusion

Coinbase has made history by being the first cryptocurrency-focused company to join the S&P 500. Following this news, Coinbase's stock rose over 7% during after-hours trading.

The decision to add Coinbase to the index comes shortly after Coinbase's agreement to acquire Deribit, a crypto derivatives exchange, for $2.9 billion. This deal includes a $700 million cash payment, while the rest will be paid in Class A stock, potentially causing a delay in the finalization of the acquisition.

Despite this achievement, Coinbase's recent financial report showed mixed results, with the company falling short of revenue expectations by $200 million in Q1 2025.

Nonetheless, there is strong user engagement with the platform, as evidenced by a 49% increase in USDC balances on Coinbase from one quarter to the next, indicating the robustness of its user base amidst financial challenges.

The inclusion of Coinbase in the S&P 500 signifies a significant step towards the integration of the cryptocurrency industry into traditional finance.