Coinbase Sets Standard for Tokenized Stocks with Real Securities

Coinbase CEO Brian Armstrong has called for tokenized stocks to be backed by real securities, saying they should provide more than just price exposure.

The company's tokenized equities, launched in August with Apple, Nvidia, Meta and Alphabet shares, are built on a model that combines redemption rights and benefits tied to the underlying securities.

According to Armstrong, Coinbase has established a standard for tokenized stocks, where each token represents a real share rather than a synthetic asset or debt instrument. Verified holders can request redemption for the underlying stock, U.S. dollars, or a supported cryptocurrency such as USDC, although compliance checks apply before processing a request.