Coinbase Requests SEC Approval for Tokenized Stock Trading Expansion

Coinbase is requesting approval from the U.S. Securities and Exchange Commission (SEC) to launch tokenized stock trading, aiming to offer digital versions of stocks on blockchain networks.

The initiative could enable round-the-clock trading, lower transaction costs, and remove clearing intermediaries.
Coinbase seeks a no-action letter or exemption from enforcement for regulatory protection in offering these products.
The move represents a shift for Coinbase, which holds a broker-dealer license through a dormant affiliate.
If successful, Coinbase could compete with retail brokerages like Robinhood and Charles Schwab, as well as crypto exchange Kraken.
Tokenized equities are not currently legal in the U.S., but platforms like Kraken are testing them overseas.
Coinbase’s timing coincides with a more favorable regulatory environment under SEC chair Paul Atkins.
Grewal mentioned the lack of clear SEC guidance and did not confirm whether Coinbase had formally filed its request.
He emphasized the potential for tailored regulation for securities traded digitally.