Brian Armstrong Backs Fully Collateralized Tokenized Stocks

Brian Armstrong backs tokenized stocks
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Brian Armstrong stated this Monday that tokenized stocks must be backed by real financial securities to guarantee legitimacy and global liquidity. The Coinbase executive declared that the assets issued on its network avoid synthetic derivatives or debt, relying instead on stocks held in custody by regulated entities with direct redemption rights and dividend reinvestment.

With this move, Armstrong aims to connect international investors with the more than $70 trillion U.S. stock market. Issued under the B20 standard on Base via an offshore entity and safeguarded by Alpaca Securities, these instruments temporarily exclude U.S. users due to regulatory reasons, while logging daily volumes above $100 million on decentralized platforms.

The institutional ecosystem is moving toward integrating voting rights and expanding the asset lineup to include companies like Tesla and SpaceX. The next phase will hinge on the regulatory response regarding delegated custody and the cross-border expansion of these financial instruments.


Source: https://x.com/brian_armstrong/status/2099511113947681070


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