Cryptocurrency exchange Coinbase is actively pursuing regulatory approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized versions of traditional stocks on blockchain platforms.
Paul Grewal, Coinbase’s Chief Legal Officer, underscored the critical importance of obtaining SEC authorization to unlock the potential of tokenized securities within the U.S. market. The initiative aims to transform equity trading by enhancing accessibility and operational efficiency.
Tokenized equities promise significant advantages over traditional trading, including round-the-clock 24/7 market availability, reduced transaction costs, and faster settlement times, potentially altering how investors interact with traditional stock markets.
While challenges around regulatory compliance and custody management persist, recent statements from the SEC indicate a potential shift towards a more accommodating stance on tokenized assets under the current administration.
This move places Coinbase alongside competitors like Kraken, which has also revealed plans to list U.S.-based equities and Exchange-Traded Funds on blockchains such as Solana, signaling growing institutional interest in tokenizing traditional financial instruments.