Coinbase Plans Tokenized Stocks With Onchain Ownership and Dividends
Coinbase plans to offer tokenized stocks backed one-for-one by U.S. equities, with users able to hold, trade and redeem shares onchain while receiving dividends. The products are expected to launch first in eligible jurisdictions outside the U.S., though Coinbase has not announced a launch date.
What happened?
Coinbase plans to offer tokenized stocks backed one-for-one by U.S. equities, with users able to hold, trade and redeem shares onchain while receiving dividends. The products are expected to launch first in eligible jurisdictions outside the U.S., though Coinbase has not announced a launch date.
Why it matters
Coinbase said it plans to introduce tokenized stocks backed one-for-one by underlying U.S. equities, adding the U.S.-listed crypto exchange to a growing field of companies trying to bring traditional securities onto blockchain networks. The company said users would be able to own, trade, hold and redeem the securities onchain, with dividends paid automatically.
Coinbase said it plans to introduce tokenized stocks backed one-for-one by underlying U.S. equities, adding the U.S.-listed crypto exchange to a growing field of companies trying to bring traditional securities onto blockchain networks. The company said users would be able to own, trade, hold and redeem the securities onchain, with dividends paid automatically.
The development matters because tokenized securities are becoming a more competitive part of the crypto market’s push into traditional finance. Supporters of the model argue that putting stocks on blockchain rails could shorten settlement times, reduce costs and allow assets to trade beyond standard market hours.
Coinbase CEO Brian Armstrong described the planned products as different from many existing tokenized stock offerings, saying they would represent actual ownership rather than derivative or synthetic exposure. According to CoinDesk, Armstrong said the shares would offer ownership benefits such as dividend upside alongside the features of tokenized assets.
The initial rollout will be limited to eligible jurisdictions outside the U.S. Coinbase has not provided a launch date, saying only that the products are coming soon. The announcement came ahead of a Coinbase product event scheduled for Tuesday at 3 p.m. ET, where the company was expected to unveil offerings across trading and financial services.
Competition around tokenized equities has intensified this year. Kraken has added tokenized U.S. stocks for customers in more than 180 countries through its xStocks platform, while Robinhood has announced plans for tokenized equities in Europe. Gemini, Bybit and other exchanges have also explored similar products, as major financial firms including BlackRock, Franklin Templeton and JPMorgan expand tokenized fund and asset initiatives.