Home Coinbase To Launch Tokenized U.S. Stocks Backed 1:1 By Real Shares

Coinbase To Launch Tokenized U.S. Stocks Backed 1:1 By Real Shares

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Coinbase To Launch Tokenized U.S. Stocks Backed 1:1 By Real Shares
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  • Coinbase plans to launch 1:1-backed tokenized stocks, allowing investors to own, trade, hold, and redeem real U.S. equities directly onchain.
  • Unlike many existing tokenized stock products that function as derivatives or IOUs, Coinbase says its offering will provide true ownership rights, including access to dividend payments.
  • The new onchain shares will initially be available only to eligible users outside the United States, with a launch date yet to be announced.

Coinbase announced intentions to launch tokenized stocks that are backed one-for-one by underlying U.S. stocks, joining the increasing competition between traditional financial organizations and cryptocurrency companies to add stocks to blockchain networks.

Coinbase Global Inc. the largest US based regulated cryptocurrency exchange stated in a post on X on Tuesday that “the first real, 1:1 backed tokenized stocks are coming,” enabling users to own, trade, hold, and redeem the securities onchain while earning dividends automatically.

The statement is made ahead of a product event that is set for Tuesday at 3 p.m. ET, where the company, best known for its cryptocurrency exchange, is anticipated to present a number of products related to trading and financial services.

In a statement, CEO Brian Armstrong said, “These are real 1:1 backed tokenized stocks you can trust for the first time.” “You own an actual piece of the company onchain.”

According to Armstrong, the products are not like many tokenized stock offerings that are already available, which are frequently set up as synthetic exposures or derivatives rather than direct ownership stakes.

Coinbase Says Tokenized Stocks Offer Real Ownership, Not IOUs

Other existing options are IOUs or derivatives, not actual ownership, he stated. “Our tokenized stocks will give all the benefits of true ownership (e.g. dividend upside), with all the benefits of tokenized assets.”

As companies look to transfer conventional assets onto blockchain rails, tokenized stocks are one of the digital asset industry’s fastest-growing segments.

Advocates claim that the technology can shorten settlement times, cut expenses, and enable assets to trade continuously rather than only during market hours.

Tokenized stocks offer foreign investors better access to capital markets in the biggest economy in the world. Investors can obtain exposure through blockchain-based platforms rather than opening accounts with international brokers and managing local regulations.

Coinbase Joins Kraken & Robinhood In The Race For Tokenized Stocks

This year has seen a rise in industry competition. Tokenized U.S. stocks are now available to users in over 180 countries via Kraken’s xStocks platform, while Robinhood (HOOD) has announced intentions to provide tokenized stocks in Europe. Similar products have also been investigated by Bybit, Gemini (GEMI), and other cryptocurrency exchanges.

In conventional financial markets, tokenization is also becoming more popular. BlackRock (BLK), Franklin Templeton, and JPMorgan (JPM) have all increased their tokenized fund and asset offerings, and Citi has predicted that tokenized securities might develop into a multitrillion-dollar market by the end of the decade.

Tokenized stocks will initially only be accessible in qualified non-US nations, according to Coinbase. The company only stated that the products are “coming soon,” without offering a debut date.

 

 

Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV

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