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Coinbase Proposes Securities Commission Authorization for Stock Token Trading, Aiming to Challenge Robinhood's Dominance: Sources

Leading U.S. cryptocurrency exchange seeks authorization from the Securities and Exchange Commission (SEC) for tokenized stock share distributions.

Coinbase Pursuing SEC Authorization for Stock Trading Tokenization to Emulate Robinhood's...
Coinbase Pursuing SEC Authorization for Stock Trading Tokenization to Emulate Robinhood's Performances, According to Reports

Coinbase Proposes Securities Commission Authorization for Stock Token Trading, Aiming to Challenge Robinhood's Dominance: Sources

Breaking news! Coinbase is gunning for a major shakeup in the crypto world by seeking approval from the US Securities and Exchange Commission (SEC) to trade tokenized equities.

According to recent reports, the top U.S. exchange by volume plans on offering blockchain-based stock trading, transforming traditional equities into digital tokens—essentially buying stocks on a decentralized network[1][2][4][5].

Here's what you need to know:

  • Tokenized equities will be digital tokens that represent shares of companies but don't provide holding of the underlying stocks[2][3][4].
  • Coinbase is expected to approach the SEC for a "no-action letter," a regulatory green light that would effectively sanction the platform to operate[2][3][4].
  • They've already got that broker-dealer license since 2018, but they're hoping for a fresh opportunity to reposition the company with a new trading division dedicated to tokenized stock[1].
  • The move could turn the heads of big-name brokers like Robinhood and Charles Schwab as Coinbase enters the fray with a blockchain-powered stock trading experience[4].
  • Cutting costs, accelerating settlement times, and enabling 24/7 trading are just some of the compelling benefits of tokenized equities[4][5].

Post-approval, US retail investors could be looking at some major modernizations in their stock-trading game, leveraging blockchain technology for greater efficiency and accessibility[2][4].

In the past, US-based companies have only been able to offer tokenized stock services to folks living outside the States[2][4]. Coinbase's initiative makes it one of the first attempts to bring this service stateside, operating under regulatory oversight[2][4].

Coinbase's ambitious plans in the face of a regulatory landscape that's marginally friendlier than before—the SEC abandoned past action against Coinbase earlier in 2025[2]—is a significant move. Other players in the industry, like Kraken, have stated intentions to offer U.S. stock trading, but primarily for investors outside the States[2][4].

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Coinbase's aim to trade tokenized equities could revolutionize the finance industry by digitizing traditional stocks on a decentralized network, bringing new reasons for US retail investors to consider investing in cryptocurrency and altcoins. With tokenized equities, an investor could potentially leverage blockchain technology for a more accessible and efficient stock-trading experience, even in the regulatory landscape that's becoming slightly more favorable to crypto ventures.

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