Coinbase wants to offer stock trading through blockchain. The company plans to use tokenized equities, which are digital tokens that represent shares of a company. Coinbase must first get approval from the U.S. Securities and Exchange Commission before launching the service.
To move forward, Coinbase will need a no-action letter or exemptive relief from the SEC. These approvals would allow Coinbase to offer the service without the risk of enforcement. Without registration as a broker-dealer, Coinbase cannot currently offer securities trading in the United States.
This plan would place Coinbase in competition with companies like Robinhood and Charles Schwab. If approved, it would mark Coinbase’s entry into a new business area. The company’s legal team has called the move a top priority.
Coinbase pushes blockchain stock trading
Tokenized equities let investors hold digital tokens instead of traditional stock certificates. Proponents say this method can lower costs, speed up settlement, and allow for trading around the clock. These benefits could modernize equity trading through blockchain.
Other companies have started exploring this area too. Rival exchange Kraken recently launched tokenized stocks outside the United States. Coinbase wants to bring similar services to American markets. But it needs clear guidance from regulators to move ahead.
Challenges remain. A recent report from the World Economic Forum cited issues with liquidity and the lack of global standards. These hurdles must be resolved before tokenized equities can become mainstream.
Coinbase has not said if it has submitted an official request to the SEC. It also has not shared a launch date. The company’s past conflict with the SEC over operating without registration remains a key backdrop.
SEC shift could spark stock market innovation
However, under new leadership, the SEC has pulled back from previous lawsuits and seems open to revised rules for crypto and blockchain services. Former President Donald Trump has supported crypto businesses.
His administration has rolled back several enforcement cases and has brought in crypto-friendly officials. These steps have helped digital assets regain momentum, with bitcoin reaching record highs this year.
Coinbase’s attempt to launch tokenized equity trading could reshape U.S. financial markets. If the SEC approves, it could trigger more innovation in how people buy and sell stocks. Coinbase now waits for the regulatory signal to proceed.
