Coinbase is asking the Securities and Exchange Commission (SEC) for permission to offer tokenized stocks to its users. This move would put the leading crypto exchange in direct competition with major trading platforms like Robinhood and Charles Schwab. This would allow Coinbase to provide stock trading through blockchain technology, expanding its service beyond crypto. How Tokenized Stocks Could Transform Market Trading Tokenized equities are digital versions of company shares that exist on a blockchain. Instead of owning the actual stock, investors hold a digital token representing it. These tokens can be traded on blockchain platforms like Bitcoin (BTC). Supporters say tokenized stocks could lower costs by cutting out middlemen, making trades faster, and allowing trading outside regular market hours. In 2024, industry leaders predicted that the Real-world asset (RWA) tokenization could reach over $600 billion in assets under management (AUM) by 2030. However, a recent World Economic Forum report said tokenized stocks often lack enough buyers and sellers, making trading harder. There are also no clear global rules yet, which could slow their adoption. In May, Robinhood proposed a federal framework to the SEC to help support tokenizing real-world assets. The goal is to modernize U.S. markets and make them more efficient and accessible. Coinbase Seeks SEC Approval to Trade Tokenized Stocks Trading tokenized stocks is currently not allowed in the U.S. For Coinbase to move ahead, it needs special approval from the SEC, which is called a “no-action letter.” This means the agency will not take legal action if the company offers the service. Coinbase is not registered as a broker-dealer, which is usually required to trade securities. In 2023, the SEC sued the exchange for acting like one without permission. However, the case was later dropped during President Trump’s administration. Coinbase’s top lawyer, Paul Grewal, recently said this is a significant priority. He did not confirm if the trading platform has officially asked the SEC yet, but said a no-action letter would give companies more confidence to move forward. Trump Administration Takes Softer Stance on Crypto Coinbase’s move comes as the U.S. government shifts to a more crypto-friendly approach. President Trump has supported the industry by meeting with crypto leaders at the White House and nominating pro-crypto regulators. This regulatory change has boosted confidence in the market. As a result, Bitcoin and other cryptocurrencies have hit new highs this year as more investors get involved. Under Trump, the SEC has also dropped lawsuits against big crypto firms like Coinbase, Binance, and Kraken. A new task force is now working on more explicit rules for digital assets, marking a fresh start for the industry. The post Coinbase Seeks SEC Approval to Launch Tokenized Stock Trading in US appeared first on TheCoinrise.com .
