Coinbase is moving closer to bringing blockchain-based tokenized equities to U.S. investors, a move that could redefine traditional stock trading and put the crypto exchange in direct competition with Robinhood and Charles Schwab.
Push for Regulatory Approval
The company’s Chief Legal Officer confirmed that Coinbase is seeking either a no-action letter or exemptive relief from the U.S. Securities and Exchange Commission (SEC). This legal step would allow the firm to offer tokenized shares, which are digital representations of real-world stocks, without triggering enforcement action.
Describing the initiative as a “huge priority,” Coinbase aims to unlock faster settlement, 24/7 trading, and lower costs through blockchain integration. These features stand in sharp contrast to the limitations of legacy brokerage systems.
A Strategic Shift Beyond Crypto
This move signals Coinbase’s broader ambitions beyond crypto-only offerings. The company is actively diversifying its services:
- Recently introduced a credit card backed by American Express
- Partnered with Shopify and Stripe to boost USDC stablecoin payments
These steps indicate a push for mainstream financial adoption and deeper integration with traditional finance and fintech ecosystems.
Regulatory Hurdles and Industry Competition
Despite the promising potential, regulatory uncertainty remains a key obstacle to tokenized securities in the U.S. While the technology is ready, U.S. investors are still unable to access tokenized stocks under current rules.
Coinbase’s timing is notable. The announcement follows Kraken’s recent launch of xStocks, a platform offering tokenized shares of over 50 stocks and ETFs to users in Europe, Latin America, Africa, and Asia. This increasing interest underscores the global race to modernize capital markets using blockchain.
Coinbase is not yet a registered broker-dealer and previously faced legal challenges with the SEC, including a 2023 lawsuit for unregistered operations. That case was dropped in early 2025, but the regulatory environment remains complex.
What’s Next for Tokenized Equities?
While Coinbase hasn’t confirmed whether it has formally submitted its request to the SEC, the firm’s intent is clear. It is working to create a path for U.S. investors to access blockchain-powered equity markets.
Tokenized stocks could represent the next major leap in financial infrastructure, enhancing accessibility, efficiency, and transparency.
The question now is whether U.S. regulators are ready to embrace it.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.