TL;DR
- Coinbase has requested SEC approval to launch tokenized stocks in the U.S., aiming to trade traditional equities on blockchain.
- The plan would offer instant settlements, lower costs, and 24/7 trading. Kraken is already testing a similar model outside the U.S.
- The company seeks to establish clear legal ground after years of regulatory obstacles and aims to diversify its revenue beyond cryptocurrencies.
Coinbase is seeking authorization to offer tokenized stocks in the United States, setting up direct competition with major traditional brokerage firms.
The company has filed a request with the U.S. Securities and Exchange Commission (SEC) for a no-action letter — a clearance that would prevent legal action if it moves forward with these products in the country. The initiative aims to integrate traditional stocks into the blockchain ecosystem through digital tokens representing ownership of those assets.
Kraken Follows the Same Path
The project would allow users to trade company shares via blockchain, with faster settlements, lower operating costs, and 24/7 trading. Currently, these options are unavailable to U.S. customers, though several firms have started implementing similar models in other markets. Kraken, for example, announced last month the launch of xStocks, a tokenized stock line that will operate outside the U.S. in regions like Europe and Latin America.
Paul Grewal, Coinbase’s Chief Legal Officer, described this initiative as a top priority for the company. He pointed out that regulatory uncertainty has stalled the adoption of digital assets tied to traditional securities and delayed their inclusion in institutional portfolios. With this request, Coinbase seeks to create a legal framework enabling the operation of tokenized stocks without legal setbacks.
Coinbase Pushes Forward Again
In 2021, during its IPO, Coinbase attempted to issue a tokenized version of its own shares but failed to secure SEC approval. Now, under an administration more favorable to the crypto industry, the company is reviving that plan. The current government dropped several cases against crypto firms, including those filed against Coinbase and Binance in 2023, and formed a task force to draft new rules for cryptocurrencies and other digital assets.
Coinbase continues to diversify its revenue and services. Last week, it announced a credit card in partnership with American Express and new deals to process USDC payments for e-commerce businesses. The introduction of tokenized stocks would mark another step in its strategy to broaden its scope and reduce reliance on crypto trading alone
