Coinbase Seeks SEC Approval for Tokenized Stock Service

Ticker BuzzTuesday, Jun 17, 2025 8:09 pm ET
2min read

Coinbase, a leading cryptocurrency exchange and a recent addition to the S&P 500 index, has announced its intention to seek approval from the U.S. Securities and Exchange Commission (SEC) to introduce a tokenized stock service. This move comes as the market closely monitors the developments surrounding stablecoins, with

and other tech companies in the crypto space setting their sights on the U.S. stock market as the next frontier. The concept of tokenized stocks involves converting traditional company shares into digital tokens that can be traded on blockchain platforms. This innovation aims to enhance the efficiency, transparency, and accessibility of stock trading.

Coinbase's chief legal officer, Paul Grewal, revealed that the company is pursuing an SEC "no-action letter" or exemption to proceed with its tokenized stock service. This regulatory approval is crucial for Coinbase to legally offer such services and ensure compliance with securities laws. The company's competitors, such as Kraken, have already announced plans to provide tokenized stock products to non-U.S. clients, highlighting the growing interest in this emerging market.

The introduction of tokenized stocks represents a significant shift in the financial landscape, potentially revolutionizing how stocks are traded and owned. Unlike stablecoins, which are digital assets pegged to the value of a stable reserve asset like the U.S. dollar, tokenized stocks represent ownership in publicly traded companies. This innovation could democratize access to the stock market, making it easier for individuals to invest in fractional shares and diversify their portfolios.

Coinbase's pursuit of tokenized stocks aligns with its broader strategy to integrate blockchain technology into traditional financial services. By leveraging the benefits of blockchain, such as decentralization, immutability, and smart contracts, Coinbase aims to create a more efficient and secure trading environment. This move could also attract a new wave of investors who are familiar with cryptocurrencies and blockchain technology, further expanding the company's user base.

The regulatory landscape for tokenized stocks remains uncertain, as the SEC has yet to provide clear guidelines on the matter. However, Coinbase's proactive approach in seeking regulatory approval demonstrates its commitment to compliance and its confidence in the potential of tokenized stocks. As the company navigates the regulatory process, it will be crucial for Coinbase to address any concerns raised by the SEC and ensure that its tokenized stock service meets all legal requirements.

In summary, Coinbase's initiative to launch a tokenized stock service represents a bold step towards integrating blockchain technology into traditional financial markets. By seeking SEC approval and positioning itself as a pioneer in this emerging field, Coinbase aims to capitalize on the growing interest in tokenized assets and compete more effectively with traditional brokerages. The success of this initiative will depend on regulatory approval and the company's ability to address any challenges that arise during the implementation process.