Coinbase, one of the largest crypto companies in the world, has announced plans to potentially offer tokenized shares of its own COIN stock on Base, the company’s Ethereum Layer-2 network. Jesse Pollak, a developer at Base, shared the news in a post on X on Friday.
What are tokenized stocks?
Although there are no concrete plans yet, Coinbase sees tokenized stocks as an interesting possibility for the future. Pollak explained that ultimately “every asset in the world will be on Base.” The project is currently in an exploratory phase in which regulation plays a crucial role.
Tokenized stocks allow traditional stocks and other assets to be converted into digital tokens that can be traded on blockchains. This offers users a new investment channel and makes markets more accessible. The market for tokenized real-world assets (RWA) is estimated to have a potential of up to $30 trillion.
For international users, tokenized COIN shares are already available through platforms like Backed. To expand this functionality in the US, Coinbase emphasizes the importance of clear regulation. “We need legal clarity and improvements to be able to offer this to everyone,” said Pollak.
Challenges in the US: Regulation remains an obstacle
US regulation in the crypto space remains a major challenge. Under President Joe Biden’s current policies, the SEC has taken strict action against crypto companies, including Coinbase. Investment bank Citi recently noted that the US is slowly moving from enforcement actions to a broader regulatory framework. Yet the country lags behind other regions where innovations are being adopted more quickly.
A more proactive stance by the US government, as might be possible under a new president like Donald Trump, could provide more room for innovations such as tokenized stocks. Whether and when tokenized COIN stocks will actually become available to US users depends heavily on further regulatory developments.
Future perspectives: RWA as a growing trend
Coinbase’s interest in tokenized stocks reflects a broader trend in the crypto industry. Real-world assets (RWA) are high on the agenda for many major players and have the potential to play a central role in the adoption of blockchain technology in the coming years. Although the challenges in the US are significant, Coinbase’s ambition remains a sign of ongoing progress within the industry.
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