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Coinbase COIN$182.76 debuted tokenized U.S. stocks on its Base blockchain on Monday, joining rival crypto exchanges, including Kraken and Binance, in the race to bring stock trading onchain.
The rollout starts with some of the biggest names in the U.S. market: Apple (AAPL), Nvidia (NVDA), Meta (META) and Alphabet (GOOGL). The tokens are available to eligible investors outside the U.S. and represent shares held 1:1 with Alpaca, a regulated broker and custodian, according to a Base blog post.
The stock tokens are issued under Abu Dhabi Global Market (ADGM) regulation, where Coinbase recently established its international tokenization hub.
Coinbase said more stocks will follow the initial batch.
The rollout comes as tokenization is gathering steam across asset classes. Banks and asset managers have already moved tens of billions of dollars of U.S. Treasuries, private credit and investment funds onchain, RWA.xyz data shows. The potential market is sizable: Citi has projected that tokenized securities could reach $5.5 trillion by 2030.
Tokenizing public stocks is increasingly in the pipeline for companies, with crypto exchanges, fintech firms and traditional market operators exploring ways to enable equities to trade and settle on blockchain networks.
Tokenized stocks don’t all work the same way, and what sits behind the token and what rights they offer to holders have become an important dividing line as more products hit the market.
Coinbase said it issues corresponding tokens on Base using its B20 framework, with each token representing a direct claim on the underlying stock. Institutional market makers buy the shares, which are then held by Alpaca in a bankruptcy-remote structure supervised by ADGM’s financial regulator.
Dividends and stock splits are also reflected in the tokens. Once minted, they can move between wallets without a whitelist
Investors can hold the tokens in self-custody wallets and trade them around the clock on supported onchain venues, including decentralized exchange Aerodrome. Because they are blockchain-based tokens, they can also plug into decentralized finance applications, potentially allowing investors to borrow against their stocks or use them in other onchain markets.
Coinbase tapped Chainlink LINK$11.43 to provide continuous price data for the tokenized shares, giving decentralized exchanges, lending markets and other DeFi applications on Base the pricing feeds needed to use the stocks as collateral or in trading products.
Source: cryptonews.net