Coinbase to Launch Tokenized Stocks on Base for US Users

Introduction

Coinbase is evaluating the possibility of offering tokenized shares of its stock to users in the United States through Base, its Ethereum layer-2 network. This initiative was hinted at by Jesse Pollak, a developer at Base, in a recent post on X (formerly Twitter).

Current Availability for Non-US Users

Non-US users already have access to tokenized Coinbase (COIN) shares via platforms like Backed, a tokenized real-world asset (RWA) service. Pollak revealed that Coinbase is considering extending this feature to US users in the future.

According to Pollak, introducing tokenized COIN on Base is “something we are looking into in the new year.” While specific plans have not yet been finalized, he envisions a future where “every asset in the world will be on Base.”

Regulatory Challenges

Coinbase is still in the “exploratory phase” of this initiative, with a focus on navigating the complex regulatory landscape in the United States. Pollak emphasized the need for regulatory clarity, stating:

“We need regulatory clarity and improvements that embrace onchain as an open platform to unlock this for everyone.”

Tokenized securities like COIN remain restricted in the US, but broader regulatory transparency is essential for the widespread adoption of such innovative assets.

Market Potential for Tokenized RWAs

The tokenized real-world asset (RWA) market is projected to reach a valuation of $30 trillion globally, presenting significant opportunities for platforms like Coinbase. By tapping into this market, Coinbase could play a pivotal role in bridging traditional finance and blockchain technology.

• Tokenized securities can bring liquidity to traditional financial assets.
• Broader adoption depends on regulatory clarity and market acceptance.
• The global RWA market offers immense growth potential for blockchain platforms.

Outlook for Tokenized Shares in the US

Despite the promise, regulatory hurdles remain a significant challenge. US regulators, including the SEC, continue to scrutinize the cryptocurrency industry, which has slowed the adoption of tokenized assets.

Coinbase remains cautiously optimistic, hoping for a more crypto-friendly regulatory environment under future leadership. As the company monitors developments, its potential move toward tokenized shares could pave the way for broader crypto adoption in traditional finance.