Coinbase Launches Tokenized U.S. Equities on Base Blockchain

Coinbase has launched tokenized U.S. equities on the Base blockchain, allowing users to buy and sell shares of popular stocks like NVDAc, METAc, AAPLc, GOOGLc, AMZN, COIN, CRCL, INTC, MSFT, MSTR, SNDK, SPCX, and TSLA.

The tokens are issued under the B20 standard, with Alpaca Securities serving as the regulated broker-custodian. This means that the underlying shares are held in a bankruptcy-remote structure with 1:1 backing, and pricing runs through Chainlink Data Feeds.

The launch marks a significant milestone for Coinbase, which is trying to establish itself as a leader in tokenized stocks. The company's tokens carry dividends and voting rights, unlike those offered by competitors Kraken and Binance, which are certificate-backed instruments without voting rights.

The regulatory landscape surrounding tokenized securities has been uncertain, with the SEC's proposed innovation exemption for tokenized securities delayed twice. The exemption would have allowed companies to issue tokenized securities, but its delay has forced Coinbase to launch its product internationally, restricted to non-U.S. persons under Regulation S.