Coinbase Pushes to Offer Tokenized Equities in the U.S.
Coinbase (NASDAQ:COIN) is preparing to reshape equity trading by seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized equities to its users. The move would allow the crypto exchange to integrate blockchain technology into traditional stock markets — a significant pivot that could redefine its competitive edge.
A Strategic Shift Toward Blockchain-Based Stocks
The company’s chief legal officer, Paul Grewal, confirmed the initiative during an interview with Reuters on Tuesday. He called it a “huge priority” for Coinbase, indicating that it may soon become a major revenue driver.
By tokenizing equities, Coinbase aims to convert traditional shares into digital tokens that behave like cryptocurrencies. Investors would then hold blockchain-based representations of company stocks rather than the physical or electronic securities held through legacy brokers.
New Competition for Robinhood and Schwab
If Coinbase receives SEC approval, it would enter direct competition with traditional brokerages such as Robinhood (NASDAQ:HOOD) and Charles Schwab (NYSE:SCHW). Unlike these incumbents, Coinbase would offer 24/7 trading through tokenized shares — increasing accessibility and efficiency for retail and institutional investors alike.
The approach aligns with the broader industry trend of integrating traditional finance with decentralized infrastructure, a movement often referred to as “TradFi meets DeFi.”
Regulatory Roadblocks and Market Potential
Despite the ambitious plan, Coinbase faces a complex regulatory landscape. SEC approval will be a critical hurdle, especially as the agency continues to scrutinize the crypto sector. However, Coinbase‘s push comes at a time when tokenized real-world assets (RWAs) are gaining legitimacy among institutions.
Tokenized equity markets are still in their infancy but hold immense growth potential. Analysts believe that Coinbase is well-positioned to capitalize, thanks to its existing user base, robust compliance protocols, and deep blockchain expertise.
Coinbase Diversifies Beyond Crypto
This effort underscores Coinbase’s strategy to diversify its offerings beyond cryptocurrency trading. By entering the tokenized securities space, the firm can reduce its dependency on volatile crypto markets and expand into more stable, regulated financial services.
The initiative also aligns with Coinbase’s broader roadmap to transform itself into a one-stop-shop for digital assets — including crypto, tokenized commodities, and now, tokenized equities.
The Future of Trading on the Blockchain
As tokenized finance gains traction globally, Coinbase’s attempt to pioneer regulated equity trading on-chain marks a bold bet on the future. If successful, this could usher in a new era of seamless, 24/7 stock trading with instant settlement and reduced friction.