Tokenized Equities: Why Infrastructure (Edel Finance) May Outperform Distribution (Coinbase) in the Long Run

The tokenized equities market has emerged as one of the most dynamic sectors in fintech, surging by 2496% in 2025 alone to reach a market capitalization of $831 million. As this space evolves, two distinct strategies are vying for dominance: infrastructure development (led by platforms like Edel Finance) and distribution scalability (embodied by Coinbase). While both players are critical to the ecosystem, a closer examination of financial utility metrics and adoption trajectories suggests that infrastructure-focused projects may hold a stronger long-term value proposition.

Edel Finance: Building the Rails for Tokenized Equities

Edel Finance has positioned itself as a foundational infrastructure provider in the tokenized equities space, focusing on lending, borrowing, and settlement mechanisms. Its recent launch of a testnet demonstrates its commitment to enabling real-world use cases, such as margin trading and collateralized loans, which are essential for institutional adoption. By 2025, Edel's native token, EDEL, had attracted 6,500 unique wallet holders a figure that, while modest, compared to Coinbase's user base, reflects early-stage traction in a niche but high-growth market.

Financially, Edel reported revenue of EUR 267.8 million for the 2024/25 financial year, with EBITDA rising 7.7% to EUR 34.8 million according to its financial statements. Its forward-looking guidance (EUR 260–290 million in revenue for 2025/26) indicates cautious optimism, driven by demand for its tokenized equity infrastructure according to official filings. Crucially, Edel's partnership with Coinbase-part of the latter's "everything exchange" vision-highlights its role as a complementary infrastructure layer according to industry analysis. This collaboration allows Coinbase to offload complex tokenization mechanics to Edel, enabling the exchange to focus on user acquisition and product diversification.

Coinbase: Scaling Distribution in a Crowded Market

Coinbase's strategy centers on distribution and user acquisition, leveraging its 105 million registered users (as of 2024) and 10.8 million monthly active users according to business analytics. Its Q3 2025 financials underscore this focus: total revenue hit $1.9 billion, a 55% year-on-year increase, driven by both spot trading volume ($59 billion) and institutional trading revenue ($135 million post-Deribit acquisition) as reported in earnings call transcripts. The exchange's foray into tokenized equities via Coinbase Tokenize signals a strategic expansion into the $831 million market, with analysts projecting $230 million in annual revenue from tokenized stocks alone according to market research.

However, Coinbase's reliance on distribution scalability exposes it to inherent risks. For instance, its tokenized equities platform competes with traditional brokers like Robinhood and Kraken, which are also exploring tokenization according to industry reports. Moreover, Coinbase's user growth, while impressive, is constrained by regulatory scrutiny and market saturation in retail crypto trading. Its "everything exchange" vision-integrating TradFi and crypto-requires continuous innovation, but the platform's margins may be pressured as competition intensifies.

Comparative Analysis: Infrastructure vs. Distribution

The key differentiator lies in financial utility and adoption dynamics. Edel Finance's infrastructure model is inherently deflationary in its value capture: as tokenized equities mature, platforms that enable lending, borrowing, and settlement will benefit from recurring fees and network effects. For example, Edel's testnet demonstrates how tokenized stocks can unlock liquidity through margin trading-a use case that Coinbase's distribution model cannot replicate.

Conversely, Coinbase's strength in user growth and product diversification (e.g., Kalshi integration) is offset by its intermediary role in the tokenization stack. While it can facilitate trading and custody, it relies on infrastructure providers like Edel to handle the underlying mechanics. This creates a dependency that could limit Coinbase's margins as tokenization becomes commoditized.

Adoption rates further highlight this asymmetry. The tokenized equities market's 2496% growth in 2025 was driven by infrastructure innovations, not just user acquisition. Edel's partnerships with institutional players and its role in Coinbase's ecosystem position it to capture a larger share of this growth. Meanwhile, Coinbase's user base, though vast, may not translate to long-term value if the platform fails to differentiate itself beyond distribution.

Conclusion: The Long Game Belongs to Infrastructure

While Coinbase's scale and brand recognition give it a short-term edge in tokenized equities distribution, Edel Finance's infrastructure-centric approach is better aligned with the sector's long-term trajectory. As tokenized equities transition from niche experimentation to mainstream adoption, the demand for robust lending, borrowing, and settlement mechanisms will outpace the need for additional distribution channels.

Investors seeking exposure to this space should prioritize platforms that build the rails for the next financial internet-those that enable financial utility rather than merely facilitating transactions. Edel Finance's partnerships, financial resilience, and testnet progress according to industry analysis suggest it is well-positioned to outperform in this evolving landscape.