Coinbase, a well-known cryptocurrency exchange, is considering offering tokenized stocks and seeking approval from the U.S. Securities and Exchange Commission (SEC).
Coinbase's Strategy on Tokenized Stocks
According to a Reuters report, Coinbase's Chief Legal Officer, Paul Grewal, stated that the company is aiming to get SEC approval to offer 'tokenized equities,' which could allow it to compete with other platforms such as Robinhood. Grewal noted that this is a 'huge priority' for Coinbase.
Regulatory Context
As of June, tokenized equities, such as company stocks, are not available for trading in the U.S. However, U.S.-based digital assets companies have been able to offer similar services to overseas clients through partnerships. The exchange Kraken announced plans in May to launch tokenized U.S. stock trading for international clients.
Current Status of Coinbase Shares
At the time of publication, Coinbase shares (COIN) were trading at $252.20, having fallen approximately 3.6% in the last 24 hours. In May, the company became the first U.S. cryptocurrency firm to be included in the S&P 500 index.
As Coinbase continues to strive for the expansion of its services, obtaining SEC approval for tokenized stock trading may significantly enhance its market competitiveness.
