Hassan Maishera
TL;DR
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Coinbase introduced tokenized US stocks on its Base blockchain, starting with Apple, Nvidia, Meta, and Alphabet.
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The tokens are available to eligible investors outside the United States and are backed 1:1 by shares held with regulated broker Alpaca.
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Issued under Abu Dhabi Global Market regulations, the tokens offer a direct claim on the underlying stocks.
Coinbase Brings US Stocks to Its Base Blockchain
Coinbase has launched tokenized US stocks on its Base blockchain, expanding its push to bring traditional financial assets onchain.
The initial offering includes shares of Apple, Nvidia, Meta, and Alphabet. The tokens are available to eligible investors outside the United States and represent traditional shares held on a one-to-one basis.
Coinbase said additional stocks will be introduced following the initial rollout. The launch places Coinbase alongside cryptocurrency exchanges such as Kraken and Binance, which are also pursuing blockchain-based stock trading products.
According to a Base blog post, each token corresponds to an underlying share held by Alpaca, a regulated broker and custodian.
Coinbase uses its B20 framework to issue the corresponding tokens on Base. Institutional market makers purchase the underlying shares, which are then held by Alpaca in a bankruptcy-remote structure.
That structure is supervised by Abu Dhabi Global Market’s financial regulator. Coinbase said each token represents a direct claim on the underlying stock, distinguishing the product from tokenized instruments that offer only synthetic exposure to a company’s share price.
Dividends and stock splits are also reflected in the tokens.
Coinbase Uses Abu Dhabi as International Tokenization Hub
The tokenized shares are issued under Abu Dhabi Global Market regulations. Coinbase recently established its international tokenization hub in the jurisdiction as part of its effort to expand blockchain-based financial products outside the United States.
The initial stock tokens are available only to eligible non-US investors.
The company has not announced whether or when similar products could become available to customers in the United States.
Coinbase said investors can hold the tokenized shares in self-custody wallets and trade them at any time on supported onchain platforms.
One of the supported trading venues is Aerodrome, a decentralized exchange operating on Base.
Unlike traditional stock markets, which follow defined trading sessions, blockchain-based markets can operate 24 hours a day.
Once issued, the tokens can also move between wallets without requiring individual wallet addresses to be added to a whitelist, according to Coinbase.
However, continuous onchain trading does not necessarily mean that the underlying stock market is open or that liquidity will be consistent at all times.
The blockchain-based structure allows tokenized stocks to interact with decentralized finance protocols.
Investors could potentially use their shares as collateral, borrow against them, or incorporate them into other onchain financial products.
The availability of those features will depend on whether individual DeFi platforms support the tokens and how they manage risks such as price volatility and liquidity.
Coinbase’s approach combines exposure to traditional equities with the transferability and programmability of blockchain-based assets.
Tokenized Securities Market Could Reach $5.5 Trillion
Coinbase’s launch comes as financial institutions increasingly experiment with moving traditional assets onto blockchain networks.
Banks and asset managers have already tokenized tens of billions of dollars in US Treasuries, private credit, and investment funds, according to RWA.xyz data.
Citi has projected that the tokenized securities market could grow to $5.5 trillion by 2030.
However, tokenized stock products differ in their legal structures, custody arrangements, and the rights provided to investors.
Coinbase’s model emphasizes direct claims on underlying shares, regulated custody, and compatibility with decentralized finance as it competes for a position in the growing tokenization market.
