Bitwise Launches Tokenized Stock Portfolio for Non-U.S. Investors on Base Blockchain

Bitwise Introduces Tokenized Stock Portfolio on Base

Bitwise, a crypto asset manager, has launched Automated Token Portfolios (ATPs) on the Base blockchain. This allows eligible investors outside the U.S. to hold tokenized stocks directly in their own digital wallets. The portfolio automatically adjusts to match Bitwise’s model without requiring the company to take control of the assets.

The product builds on Coinbase’s tokenized stocks, which were introduced a day earlier. These tokens represent shares of real companies but exist on a blockchain, a digital ledger that records transactions securely and transparently. Bitwise selects the stocks and their target weights, while a platform called Glider handles the buying, selling, and rebalancing of the portfolio.

Investors retain full control of their tokens, as neither Bitwise nor Glider holds custody of the assets during the process.

Current Portfolio and Availability

At launch, only one of Bitwise’s three announced portfolios is active: Mag7X. This portfolio is designed to equally weight eight major technology companies—Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, Tesla, and SpaceX. However, only four of these stocks (Apple, Alphabet, Meta, and Nvidia) are currently available as tokenized assets through Coinbase. The remaining companies will be added as Coinbase tokenizes them.

The Mag7X portfolio charges a 0.15% fee. Coinbase is also offering an additional 10% incentive that benefits the portfolio’s performance. The service is only available to non-U.S. investors who meet eligibility requirements under Regulation S of the U.S. Securities Act of 1933.

How the Portfolio Works

• The portfolio is self-custodied, meaning investors hold the tokens in their own wallets rather than relying on a third party.
• Glider rebalances the portfolio using session credentials authorized by the user, ensuring Bitwise or Glider cannot initiate transactions without permission.
• The tokenized stocks are issued by a Coinbase entity licensed in Abu Dhabi Global Market (ADGM).
• Coinbase claims the tokens are backed one-for-one by real shares, but Bitwise has not independently verified this or the terms for redeeming the tokens.
• Investor rights are governed by Coinbase’s terms, the ADGM prospectus, and ADGM law.

What Is Confirmed

• Bitwise has launched Automated Token Portfolios (ATPs) on the Base blockchain for non-U.S. investors.
• Only the Mag7X portfolio is active at launch, holding four tokenized stocks: Apple, Alphabet, Meta, and Nvidia.
• The portfolio charges a 0.15% fee, with an additional 10% incentive provided by Coinbase.
• Investors retain control of their tokens, and neither Bitwise nor Glider takes custody of the assets.
• The service is restricted to eligible non-U.S. investors under Regulation S.

What Is Still Unclear

• Bitwise has not independently verified whether the tokenized stocks are fully backed by real shares or the redemption terms.
• The timeline for adding the remaining four stocks (Microsoft, Amazon, Tesla, and SpaceX) to the Mag7X portfolio is not specified.
• The launch dates for the two other announced portfolios (Robotics and AI Leaders) remain unconfirmed.

Why This Matters for Investors

This launch represents a step toward combining traditional finance with blockchain technology. Tokenized stocks allow investors to hold shares of companies in a digital format on a blockchain, which can offer benefits like 24/7 trading and direct ownership. However, the service is currently limited to non-U.S. investors, and the backing and redemption terms of the tokens have not been independently verified by Bitwise.

Sources

• The Defiant