Coinbase seeks US approval for tokenized stocks after overseas rollout

The exchange has already launched tokenized equities abroad but still needs SEC relief to offer them to American customers.

Coinbase is pushing to bring tokenized equities to the $70 trillion US stock market, an area it has already tested outside the country. The exchange launched tokenized versions of four tech stocks, Nvidia, Meta, Apple and Alphabet, on its Base blockchain for eligible non-US users, letting them trade without a US brokerage account, according to The Defiant.

By August 24, that lineup had grown to 13 stocks, including Amazon, Tesla, Microsoft, Intel and Coinbase's own shares, each representing a direct claim on the underlying stock. The expanded rollout drew $10.8 million in trading volume on its first day, Yahoo Finance reported.

US customers still cannot buy these tokenized shares. Coinbase asked the SEC in June for relief to offer the product domestically, where such trading is currently banned. Chief Legal Officer Paul Grewal has called the push a "huge priority" and said Coinbase needs a no-action letter or exemptive relief from the regulator to move forward. Reuters reported that SEC Chair Paul Atkins is preparing an innovation exemption that would let firms test blockchain-based financial products, though that would not itself authorize tokenized stock trading, and questions over broker-dealer registration, custody and settlement remain open. Separately, the Digital Asset Market Clarity Act, which would have set rules for how crypto firms operate, failed to clear the 60 votes needed to advance in the Senate.

Tokenized equities represent a structural opportunity for Coinbase, but regulatory and adoption hurdles leave the near-term revenue impact uncertain. Markets have shown a muted response to the news, with today's sector rotation favoring energy and select tech stocks rather than broad participation, suggesting investors are pricing in the execution risk rather than treating this as an immediate catalyst.