Coinbase wants to offer tokenized stocks on the blockchain, accessible 24/7 with reduced fees, potentially revolutionizing stock investment in the United States.
The platform seeks SEC approval to avoid any legal hurdles, either through a no-action relief letter or an exemption status.
Facing rivals like Kraken launching similar offerings outside the US, Coinbase strives to stay ahead in the American market.
Coinbase asks the SEC to tokenize stocks
Coinbase is no longer content with just cryptocurrencies. The American platform now aims for a much broader market: traditional stocks. And not just any way. Coinbase aims to offer stocks… on the blockchain.
A bold project that could disrupt brokerage giants like Robinhood or Charles Schwab.
The strategy: a bet on stock tokenization
The goal is clear: allowing US customers to buy and sell tokenized stocks, meaning digital representations of listed stocks, secured on the blockchain.
No more limited opening hours and two-day settlement times. With tokenization, transactions are instantaneous, available 24/7, and significantly cheaper.
But Coinbase cannot proceed without the approval of the US securities watchdog.
The obstacle: the SEC, under the new Trump administration
To navigate the traditional regulatory hurdles, Coinbase is taking a diplomatic approach. Paul Grewal, the company’s legal director, confirmed having started discussions with the SEC to secure either a ‘non-action letter’ or an exemption status.
The stakes? Avoiding lawsuits if the platform launches its tokenized stocks. And, more importantly, securing a clear framework for the entire sector.
Coinbase had already attempted tokenization in 2021, trying to tokenize its own stock during its IPO. The SEC had halted it. This time, the company is better prepared, and the context is quite different.
Competition is organizing, and time is ticking
Coinbase is not sailing alone. Its rival Kraken recently unveiled ‘xStocks’, a platform offering tokenized stocks accessible in Europe, Africa, Asia, and Latin America. Over 50 stocks and ETFs will be available, but nothing yet for the US market.
If the SEC greenlights Coinbase, it would be a first in the American market, and a blow to traditional brokers.
A vital diversification for Coinbase
In the midst of transformation, Coinbase aims to become essential in the finance of the future. After launching a credit card with American Express, integrating USDC with Shopify and Stripe, the company is accelerating its shift towards broader use cases than just crypto trading.
Coinbase has not formally submitted its request to the SEC yet. No timeline is announced. But the ambition is clear: to become the bridge between traditional finance and blockchain infrastructure.
In a context where asset tokenization is seen as one of the biggest drivers of financial market transformation, this initiative could mark a major turning point.
It remains to be seen if regulators are ready to loosen their grip.
