Coinbase, Robinhood, and Circle Poised for Gains from SEC Tokenized-Stock Exemption

Goldman Sachs and Citizens analysts have identified Coinbase, Robinhood, and Circle as early winners in the SEC's new five-year tokenized-stock exemption. The framework allows qualifying tokenized U.S. stocks to trade through automated market makers on public blockchains.

The exemption requires tokens to preserve shareholder rights such as dividends and voting, and venues face limits on trading volume and the number of stocks they can offer. Issuers also get the right to object before third-party tokenized versions of their shares can begin trading.

Goldman Sachs analysts say Coinbase is the company closest to compliance under the exemption, due to its existing tokenized-equity offering that carries many of the required characteristics. However, a gap remains as Coinbase's exchanges use central limit order books to match trades, while the SEC framework is built around automated market makers.

Citizens analysts also highlighted Coinbase's stablecoins and Ethereum-based blockchain Base as key assets in its compliance efforts. Meanwhile, Robinhood must make changes to its offshore stock tokens to fit the framework, which require price exposure to U.S. shares through a derivative without conveying ownership rights.