Summary
- Coinbase plans to introduce tokenized stocks backed one-for-one by underlying U.S. equities, allowing users to own, trade, hold and redeem equities on a blockchain while receiving dividends automatically.
- CEO Brian Armstrong stated the new products differ from many existing tokenized stock offerings by providing direct equity ownership rather than derivative or synthetic exposure.
- The tokenized stocks, part of a broader push across Wall Street and crypto firms to move traditional securities onchain, will debut in eligible jurisdictions outside the U.S. at a date yet to be revealed.
Coinbase (COIN) stated it plans to introduce tokenized stocks backed one-for-one by underlying U.S. equities, joining the growing competition among crypto firms and traditional financial companies to bring stocks onto blockchain networks.
In a post on X on Tuesday, the exchange stated “the first real, 1:1 backed tokenized stocks are coming,” allowing users to own, trade, hold and redeem the securities onchain while automatically receiving dividends.
The announcement comes ahead of a product event scheduled for 3 p.m. ET Tuesday, in which the company, best known as a crypto exchange, is expected to unveil a series of offerings spanning trading and financial services.
“For the first time, these are real 1:1 backed tokenized stocks you can trust,” CEO Brian Armstrong stated in a statement. “You own an actual piece of the company onchain.”
Armstrong stated the products differ from many existing tokenized stock offerings, which are often structured as derivatives or synthetic exposures rather than direct ownership interests.
“Other current solutions are some form of derivative or IOU — not real ownership,” he stated. “Our tokenized stocks will give all the benefits of true ownership (e.g. dividend upside), with all the benefits of tokenized assets.”
