Coinbase seeks the approval of the US Securities and Exchange Commission (SEC) to launch tokenized stock trading, a step that could expand its business to the territory of traditional brokerage companies.
Crypto Exchange’s Chief Legal Officer Paul Grewal said Reuters that Coinbase is aiming to offer digital versions of stocks – known as tokenized shares – which would act on blockchain networks rather than through conventional exchanges. The model could allow trade around the clock, reduce transaction costs and eliminate clearing intermediaries.
However, the road ahead depends on how SEC reacts. Coinbase seems to secure either a letter without action or an exemption from enforcement that both would provide legislative coverage to offer these products in the US
Push marks a strategic shift for Coinbase, which already owns a broker-dealer license through a sleeping affiliate company. If the initiative succeeds, it can place the company together with retail brokers such as Robinhood (Hood) and Charles Schwab (Schw), which meets a similar investor base, as well as the Crypto Exchange Kraken.
Tokenized shares are not yet legal to trade in the United States, but platforms such as Kraken piloting such offers abroad. Coinbases Timing is in line with a friendlier legislative climate under the new SEC chairman Paul Atkins; The agency has dropped several crypto-related litigation and created a task force dedicated to digital assets.
Still, Grewal refused to say whether Coinbase had formally submitted his request. The confidence that comes from clear SEC guidance is missed, he said.
“Exciting? Yes. Important? Absolutely. But breaking news? Not exactly. We have said since earlier this year that SEC should enable the markets to unlock Tokenized Securities,” Greval put on social media.
“Tokenized debt, equity and investment funds constitute an opportunity for tailor -made regulation of securities offered and traded via digitally native methods.”
