Coinbase is seeking permission from the U.S. Securities and Exchange Commission (SEC) to launch blockchain-based equities, Reuters reported on June 17, citing the exchange’s chief legal officer, Paul Grewal.
The plan would enable Coinbase to offer digital tokens that represent ownership in publicly listed companies, effectively merging traditional equity markets with blockchain infrastructure.
If greenlit, this step could place the exchange in direct competition with mainstream retail brokers such as Robinhood and Charles Schwab.
New product, familiar hurdles
Grewal told the newswire the initiative is a “huge priority” for the exchange, which aims to secure a “no action letter” or similar regulatory relief. This would signal the SEC’s intent not to challenge the launch under current securities laws.
Tokenized equities, digital representations of stocks traded on a blockchain, are often touted as a way to cut costs, accelerate settlement times, and enable around-the-clock trading.
Despite the promise, they remain largely experimental in the U.S. due to gaps in regulatory clarity and limited liquidity in secondary markets.
Grewal did not confirm whether Coinbase has formally submitted a request to the SEC or disclosed a timeline for rollout. He noted that greater certainty from regulators could finally unlock broader institutional interest in tokenized assets.
Shifting policy
Coinbase is not alone in chasing tokenized shares. Rival exchange Kraken unveiled its own version, dubbed xStocks, last month, but only for select jurisdictions outside the U.S. due to domestic regulatory roadblocks.
The push comes amid a friendlier environment for crypto firms under President Donald Trump’s administration. This year, the SEC dropped multiple lawsuits against major exchanges, including Coinbase, and assembled a new task force to draft modern digital asset guidelines.
For Coinbase, branching into tokenized equities represents both a fresh source of revenue and a chance to blur the lines between traditional brokerage services and DeFi. Whether U.S. regulators will embrace that vision remains to be seen.
Mentioned in this article
Credit: Source link