Coinbase, Robinhood and Circle Set to Gain From SEC’s New Tokenized Stock Rules

Wall Street analysts believe Coinbase, Robinhood, and Circle stand to benefit from the SEC’s new tokenized-stock framework, which allows qualifying US stocks to trade through automated market makers on public blockchains. The five-year exemption requires tokens to preserve shareholder rights like dividends and voting, while capping trading volume and the number of eligible stocks.

Coinbase Already Meets Many Requirements

Coinbase’s existing tokenized-equity products already align with several SEC standards, including dividend structures matching underlying shares. The company’s CEO recently said voting rights are coming soon. One challenge remains: Coinbase’s exchanges use traditional order books, while the new framework relies on automated market makers, meaning new infrastructure may be needed.

Robinhood Must Adapt Its Offering

Robinhood’s current offshore stock tokens don’t meet the framework’s ownership requirements and will need further development. This follows recent criticism from a movie theater chain over unauthorized stock tokens, an issue the new rules address by letting companies object first. Robinhood’s CEO has already signaled plans to add voting rights and redemptions.

Stablecoins Could See Added Demand

Circle may benefit indirectly as USDC sees increased use for settlement and collateral in onchain markets, while traditional exchanges remain largely unaffected for now.