Coinbase Brings Tokenized Stocks to DeFi Ecosystem
Coinbase is taking its successful approach to stablecoins and applying it to tokenized stocks. The company launched tokenized versions of US equities on its Base layer-2 network starting August 24, beginning with four tech giants: Nvidia (NVDAc), Apple (AAPLc), Meta (Meta c), and Alphabet (Alphabet c). Within the first month, cumulative decentralized exchange volume for those tokens surpassed $228 million, with daily volumes hitting roughly $100 million shortly after launch.
Each tokenized stock represents a 1:1 claim on an actual share of the underlying company. They are real equity positions, held in regulated custody by Alpaca under oversight from the Abu Dhabi Global Market. CEO Brian Armstrong has described this approach as 'true ownership,' where token holders possess actual equity in the companies represented on the blockchain.
The tokens are built on Coinbase's proprietary B20 standard, which enables compatibility with DeFi protocols. Users can already interact with these assets through platforms like Aave and Morpho. Dividends are distributed automatically to holders.
Coinbase added six more names to its tokenized stock offering on September 4: Amazon (AMZNc), Microsoft (MSFTc), Tesla (TSLAc), SpaceX (SPCXc), SanDisk (SNDKc), and MasterCard (MSTRc). The company has described this initiative as part of becoming an 'everything exchange,' a platform where users can trade crypto, earn yield, hold stablecoins, and now own fractional positions in major equities.
Coinbase is not alone in spotting this opportunity. Kraken and Robinhood are both developing their own tokenized stock solutions.