Coinbase has initiated efforts to secure regulatory approval from the U.S. Securities and Exchange Commission (SEC) for trading tokenized stocks. This strategic move aims to integrate blockchain technology with traditional equity markets, potentially disrupting established brokerage firms.
The approval would enable fractional ownership and enhanced liquidity for investors through tokenized equities. Such capabilities could challenge traditional brokers like Robinhood and Charles Schwab by offering 24/7 trading availability, fractional shares, and reduced settlement times.
Coinbase emphasizes strict compliance with SEC guidelines to ensure investor trust and platform sustainability, distinguishing its approach from previous unsuccessful attempts by Binance and FTX that faced regulatory obstacles.
The initiative is expected to boost Ethereum network activity due to its reliance on smart contracts and decentralized ledger technology for tokenization processes. This development reflects a broader trend of financial institutions adopting digital assets to improve operational efficiency and service offerings.