Crypto Giant Coinbase Aims to Disrupt Traditional Stock Markets With Tokenised Equities
In a bold regulatory move, cryptocurrency exchange Coinbase tokenised has revealed it is seeking approval from the US Securities and Exchange Commission (SEC) to offer tokenised equities on its platform. This groundbreaking development could potentially reshape the US securities market, enabling stock trading directly via blockchain technology.
Paul Grewal, Coinbase’s Chief Legal Officer, confirmed the company’s plans in an interview with Reuters, describing the initiative as a “huge priority” for the exchange. If successful, Coinbase would be positioned to compete directly with established retail brokerages such as Robinhood and Charles Schwab, offering consumers an entirely new way to invest in equities.
What Are Tokenised Equities?
Tokenised equities involve converting traditional company shares into digital tokens that are recorded and traded on a blockchain. This model allows investors to hold digital representations of stock ownership, similar to how cryptocurrencies like Bitcoin and Ethereum operate Coinbase tokenised.
Proponents argue that tokenising stocks could:
- Reduce trading costs
- Enable faster, near-instant settlement
- Allow 24/7 trading, beyond traditional market hours
However, critics and regulatory bodies, including the World Economic Forum, have highlighted ongoing challenges. Concerns include insufficient secondary-market liquidity, lack of clear global regulatory standards, and questions around investor protection in such decentralized environments.
The Regulatory Hurdle: SEC Approval Process
Currently, tokenised equities are not available for trading in the United States. Coinbase must obtain either a no-action letter or exemptive relief from the SEC to move forward. These legal mechanisms would effectively signal that the SEC will not pursue enforcement action if Coinbase offers blockchain-based stock trading under specified conditions Coinbase tokenised.
“With a no-action letter, an issuer of a tokenised equity or a platform that wishes to offer secondary trading in those equities can have some confidence that the SEC has adopted its view of why this product is compliant,” Grewal explained. Such clarity could unlock broader institutional adoption of blockchain-based securities.
Coinbase does possess a broker-dealer license through a subsidiary it acquired back in 2018, but that affiliate has remained inactive. Typically, companies offering securities trading must be registered broker-dealers under US law Coinbase tokenised.
Trump Administration’s Crypto-Friendly Stance May Aid Approval
The timing of Coinbase’s move comes as the political climate for cryptocurrency in the US has shifted significantly under former President Donald Trump. After extensive lobbying efforts and campaign contributions from the crypto sector, Trump’s administration has embraced a more crypto-friendly regulatory agenda.
In 2025, the SEC under Trump dismissed previous lawsuits against multiple major crypto firms, including Coinbase, Binance, and Kraken. A new crypto task force has been established to develop regulatory frameworks for digital assets, suggesting that policy shifts could favor innovative offerings like tokenised equities.
“The confidence that has been lacking so far has really held back a lot of the institutional adoption of crypto and blockchain technology,” Grewal noted, hinting that a more predictable regulatory environment could finally unlock the sector’s full potential.
Growing Global Interest in Tokenised Securities
While Coinbase seeks approval in the United States, its competitors are already experimenting internationally. Rival exchange Kraken recently announced the launch of its xStocks platform, which offers tokenised versions of US equities in select overseas markets, bypassing US regulatory restrictions for now.
As regulators worldwide begin to explore standards for blockchain-based securities, the move toward tokenisation reflects a broader industry trend toward financial digitalisation and increased accessibility for retail and institutional investors alike.
What Comes Next for Coinbase and Tokenised Equities?
Grewal did not confirm whether Coinbase has already filed an official request with the SEC or when such products might go live. However, securing regulatory clarity would mark a significant milestone in bringing blockchain into mainstream financial markets.
As Coinbase positions itself at the forefront of this financial revolution, the success of its SEC petition could establish a new standard for securities trading — one powered by blockchain technology, promising faster, cheaper, and more accessible stock investing for all.
For continuous updates on crypto regulation developments and blockchain innovations, stay tuned with us.
