Coinbase announced plans to launch tokenized US stocks backed one-for-one by underlying equities, featuring automatic dividend payments and on-chain settlement through its Base blockchain.
The products will initially be available only to eligible users outside the United States, although no specific launch date was disclosed. CEO Brian Armstrong stated that this offering differs structurally from existing tokenized stock products, which are generally structured as derivatives or IOUs rather than direct ownership.
Armstrong emphasized the significance of this development, saying, “For the first time, these are real 1:1 backed tokenized stocks you can trust. You own an actual piece of the company on-chain.” The platform will also manage corporate actions such as dividends and stock splits automatically.
The tokenized stocks will be deployed through Coinbase’s Tokenize platform on Base, the Layer 2 network launched in 2023. Coinbase described the stocks as “coming soon” but did not specify a timeline or list which equities will be available at launch.
This announcement intensifies competition among both crypto-native exchanges and traditional financial institutions. Kraken has recently added tokenized US stocks for customers in over 180 countries through its xStocks platform. Robinhood plans to introduce tokenized equities in Europe, while Gemini and Bybit have explored similar offerings. On the traditional finance side, BlackRock, Franklin Templeton, and JPMorgan have expanded their tokenized fund offerings in the past year, with Citi projecting that tokenized securities could grow into a multitrillion-dollar market by the end of the decade.
The core value proposition for non-US investors lies in access. Instead of navigating foreign brokerage requirements and local restrictions, users can gain exposure to US equities through blockchain-based platforms that settle instantly and operate continuously.
However, the validity of Armstrong’s claim regarding genuine ownership, real dividends, and actual corporate actions will be crucial. Tokenized stock products have historically faced challenges regarding the gap between on-chain representation and the legal claims given to holders. The clarity of Coinbase’s architecture in delivering the promised ownership rights will depend on the full product terms disclosed ahead of the launch.
This announcement was part of a broader product event where Coinbase outlined its ambitions across trading and financial services, signaling its intention to position itself as a more comprehensive financial platform. US users remain excluded from these offerings pending regulatory clarity on tokenized securities within the country.
