Crypto exchange enters crowded market for blockchain equities with claim of “real ownership”
Coinbase announced Tuesday that it is introducing tokenized stocks backed one-for-one by underlying U.S. equities, allowing users to own, trade, hold, and redeem securities onchain while receiving dividends automatically. The product, coming soon, marks the exchange’s entry into one of the fastest-growing areas of the digital asset industry.
Brian Armstrong, Coinbase CEO, framed the offering as distinct from competitors. “For the first time, these are real 1:1 backed tokenized stocks you can trust. You own an actual piece of the company onchain,” Armstrong said. He added that “other current solutions are some form of derivative or IOU, not real ownership. Our tokenized stocks will give all the benefits of true ownership (e.g. dividend upside), with all the benefits of tokenized assets.”
Tokenized stocks allow investors to hold equities on blockchain networks, reducing settlement times and enabling around-the-clock trading outside traditional market hours. For investors outside the U.S., the technology promises easier access to capital markets without opening accounts with foreign brokers. Citi has projected that tokenized securities could grow into a multitrillion-dollar market by the end of the decade.
Coinbase is not alone in the space. Kraken recently launched xStocks, offering tokenized U.S. stocks to customers in more than 180 countries. Robinhood announced plans to offer tokenized equities in Europe. Gemini, Bybit, and other crypto exchanges have explored similar products. Traditional finance firms have also moved into the sector: BlackRock, Franklin Templeton, and JPMorgan have expanded tokenized fund and asset offerings.
Coinbase did not specify which U.S. equities will be tokenized, which jurisdictions outside the U.S. are eligible, or the exact launch date. The company also did not detail regulatory approvals required, how dividend payments will be executed onchain, pricing, fee structure, or the technical infrastructure supporting the product.
Armstrong’s claim that Coinbase’s tokenized stocks represent “real ownership” while competitors offer derivatives or synthetics was not verified by competing statements from other firms in the announcement materials.
