Edel Finance ($EDEL) vs. Coinbase ($COIN): Why Infrastructure Trumps Distribution in Tokenized Equities

The tokenized equities market is no longer a speculative niche-it's a $100B+ infrastructure battleground. As of 2025, two names dominate the narrative: Coinbase (COIN) and Edel Finance (EDEL). While both are positioned to benefit from the rise of on-chain capital markets, their strategies diverge sharply. Coinbase, with its 105 million users and "Everything Exchange" vision, is betting on distribution and retail onboarding. Edel Finance, meanwhile, is building the infrastructure layer that turns tokenized stocks into functional financial instruments.

This analysis argues that Edel Finance is outpacing Coinbase as the dominant long-term play in tokenized equities infrastructure. The reason? Infrastructure is the bedrock of financial ecosystems, and Edel's focus on capital efficiency, liquidity, and composability aligns with the core principles of Web3.

The Tokenized Equities Landscape in 2025

Tokenized equities are no longer about "storing" assets on-chain-they're about activating them. By 2025, the market has evolved beyond mere representation of traditional stocks into a dynamic system where tokenized assets can be lent, borrowed, shorted, and collateralized. This shift has created a critical need for infrastructure that enables these functions-a gap Coinbase's retail-focused approach cannot fill alone.

According to a report by Blockchain Reporter, Coinbase's strategy centers on access. Its Q4 2025 launch of tokenized stocks and prediction markets aims to onboard millions of retail investors, leveraging its brand trust and existing user base. While this is undeniably valuable, it addresses only one side of the equation: liquidity creation.

Edel Finance, by contrast, is solving the other half. Its testnet launch in December 2024 introduced on-chain lending and borrowing of tokenized equities, allowing users to generate yield, access liquidity, and execute short positions without intermediaries. This infrastructure layer is essential for tokenized stocks to function as real financial instruments, not just digital representations.

Coinbase's Distribution-First Strategy: Strengths and Limitations

Coinbase's Q3 2025 financials underscore its dominance in distribution. The platform reported $7.37 billion in revenue and a 43.7% net profit margin, reflecting its ability to monetize its user base effectively. Its "Everything Exchange" vision-offering tokenized stocks, ETFs, and prediction markets-positions it as a bridge between traditional and crypto finance.

However, distribution alone cannot create a self-sustaining market. As Outlook India notes, "access without infrastructure is a one-way street." Coinbase's focus on retail onboarding risks leaving it exposed to regulatory shifts and user acquisition costs. Moreover, its platform does not yet support advanced financial primitives like shorting or margin trading, which are table-stakes for institutional-grade markets.

Edel Finance's Infrastructure Play: Building the On-Chain Capital Markets Stack

Edel Finance's testnet launch in late 2024 marked a pivotal moment. By enabling on-chain lending and borrowing of tokenized equities, Edel is addressing the capital efficiency problem that has plagued tokenized assets. Users can now collateralize tokenized stocks to generate yield in bETH or $EDEL, or take leveraged long/short positions-a functionality absent in Coinbase's offerings.

This infrastructure-first approach mirrors the evolution of DeFi, where protocols like Aave and Compound built the plumbing for liquidity before platforms like Uniswap or dYdX could thrive. Edel is doing the same for tokenized equities: enabling the primitives (lending, borrowing, shorting) that make the entire ecosystem functional.

The market has taken notice. Following Edel's testnet launch, its native token $EDEL saw a 20% price increase, signaling investor confidence in its long-term utility. This contrasts with Coinbase's stock, which, despite strong earnings, faces headwinds from a saturated crypto exchange market and regulatory uncertainty.

Why Edel Finance is the Long-Term Winner

The key differentiator lies in network effects. Coinbase's user base is a strength, but it's a finite asset in a space where infrastructure wins. Edel's platform, by contrast, is composable-its lending and borrowing protocols can integrate with other on-chain markets, creating a flywheel effect.

Consider the analogy of the internet: Amazon (distribution) and Google (infrastructure) both succeeded, but infrastructure providers like AWS became more critical over time. Similarly, as tokenized equities mature, the protocols that enable capital efficiency and financial primitives will outpace those focused solely on retail access.

Coinbase's Q4 2025 moves are commendable, but they're playing catch-up. Edel's testnet is already operational, and its focus on liquidity generation aligns with the core needs of institutional and sophisticated retail investors. In a market where tokenized assets must compete with traditional securities, infrastructure determines who wins.

Conclusion

The tokenized equities race is not just about who can onboard the most users-it's about who can build the foundations for a functional on-chain capital market. Coinbase's distribution-centric model is a necessary piece of the puzzle, but Edel Finance's infrastructure-first approach is the critical enabler of long-term growth.

As the market evolves, investors should prioritize platforms that solve structural gaps rather than just capturing demand. Edel Finance's testnet, yield-generating protocols, and focus on capital efficiency position it as the dominant long-term play in this $100B+ space.