Coinbase Debuts Tokenized Stocks on Base Blockchain

Coinbase has launched tokenized US stocks on its Base blockchain, joining the growing list of crypto exchanges vying to bring stock trading onto blockchain networks.

The rollout includes some of the biggest names in the US market: Apple (AAPL), Nvidia (NVDA), Meta (META), and Alphabet (GOOGL). The tokens are available to eligible investors outside the US and represent shares held 1:1 with Alpaca, a regulated broker and custodian.

Coinbase has used its B20 framework to issue corresponding tokens on Base, which each represent 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.

The tokenized stocks can move between wallets without a whitelist and allow investors to hold them in self-custody wallets and trade them around the clock on supported onchain venues. They can also plug into decentralized finance applications, potentially allowing investors to borrow against their stocks or use them in other onchain markets.