Coinbase launches tokenized stocks on Base blockchain for global investors
Coinbase brings Apple, Nvidia, and other stocks to blockchain
Coinbase, a major crypto exchange, has launched tokenized versions of U.S. stocks on its Base blockchain. These digital tokens represent shares of well-known companies like Apple, Nvidia, Meta, and Alphabet. The tokens are available to investors outside the United States and can be traded 24 hours a day on blockchain-based platforms.
The move is part of a growing trend to bring traditional financial assets onto blockchains, which are digital ledgers that record transactions securely and transparently. Tokenized stocks allow investors to buy, sell, and hold shares in a digital form that can interact with decentralized finance (DeFi) applications.
How the tokenized stocks work
- Each token represents one share of the underlying stock, held by regulated custodian Alpaca.
- The tokens are issued under regulations from Abu Dhabi Global Market (ADGM), where Coinbase has established its international tokenization hub.
- Investors can hold the tokens in self-custody wallets, which means they control their own assets without relying on a third party.
- The tokens can be traded on supported platforms, including decentralized exchanges like Aerodrome.
- Dividends and stock splits are automatically reflected in the tokens.
Why Coinbase chose Abu Dhabi for this launch
Coinbase recently set up its international tokenization hub in Abu Dhabi, where regulators have approved the company to issue and custody tokenized securities. The tokens are issued under the ADGM framework, which provides a regulated environment for digital assets. This allows Coinbase to offer these products to global investors while complying with local laws.
What this means for investors
Tokenized stocks combine the benefits of traditional stocks with the flexibility of blockchain technology. Because they are digital tokens, they can be used in DeFi applications, such as lending or borrowing against the stocks. Coinbase has partnered with Chainlink, a blockchain data provider, to ensure accurate price feeds for these tokens, making them usable in decentralized trading and lending markets.
This launch is part of a broader industry effort to tokenize real-world assets (RWAs), which includes U.S. Treasuries, private credit, and investment funds. Some analysts estimate that the tokenized securities market could grow significantly in the coming years.
Limitations and availability
The tokenized stocks are currently available only to eligible investors outside the U.S. Coinbase has stated that more stocks may be added in the future, but no specific timeline or additional companies have been announced.
