Coinbase is pursuing SEC approval to offer “tokenized equities,” a move that could revolutionize how people invest in stocks. This would essentially allow the cryptocurrency exchange to facilitate stock trading using blockchain technology.
Coinbase’s Chief Legal Officer, Paul Grewal, considers this initiative a “huge priority” and believes it could open a new business segment for the company.
If successful, Coinbase would directly compete with established retail brokerages like Robinhood and Charles Schwab, offering investors an alternative platform for accessing the stock market. The tokenization process involves representing traditional equities as digital tokens on a blockchain, potentially offering benefits like fractional ownership, faster settlement times, and increased transparency. The SEC’s decision on this request will significantly impact the future of digital asset integration with traditional finance.
