Coinbase is seeking regulatory approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized stock trading, signaling a bold expansion into traditional finance. According to Paul Grewal, Coinbase’s Chief Legal Officer, the crypto exchange plans to launch digital versions of equities — tokenized stocks — that would trade directly on blockchain networks instead of traditional stock exchanges.
This model could revolutionize equity markets by enabling 24/7 trading, cutting transaction costs, and removing intermediaries like clearinghouses. Coinbase hopes to receive a no-action letter or enforcement exemption from the SEC, which would pave the way for compliant operations in the U.S.
While tokenized equities are not yet legally tradable in the U.S., competitors like Kraken are already piloting such services abroad. Coinbase’s move could place it in direct competition with platforms like Robinhood and Charles Schwab by targeting the same retail investor audience through a blockchain-native approach.
The effort also coincides with a shifting regulatory landscape. Under new SEC leadership by Chair Paul Atkins, the agency has shown signs of embracing innovation by easing enforcement on some crypto-related issues and forming a task force focused on digital assets.
Although Coinbase holds a broker-dealer license through an inactive subsidiary, it hasn’t confirmed a formal filing for tokenized securities approval. Grewal emphasized that while the development isn’t “breaking news,” it reflects Coinbase’s long-standing push for regulatory clarity on blockchain-based securities.
“Tokenized debt, equity, and investment funds offer a real chance to create bespoke regulations tailored for digital markets,” Grewal posted on social media, underscoring the potential to modernize securities trading with blockchain technology.
With regulatory clarity, Coinbase could help legitimize tokenized assets in the U.S. and usher in a new era of digital finance.
