Coinbase Targets $70 Trillion US Stock Market with Fully Backed Tokenized Equities

Coinbase CEO Brian Armstrong has announced plans to expand the exchange's tokenized equities offerings, targeting over $70 trillion in US stock market value.

The tokenized stocks will be fully backed by the corresponding underlying securities and will offer redemption capabilities, dividend payments, and voting rights, with the latter feature set for a later rollout.

Armstrong views tokenized equities as a pathway for global investors to tap into the US stock market via blockchain infrastructure. The products are organized via offshore companies and subject to jurisdictional limitations and enactments.

Coinbase is taking a more securities-focused route compared to other stock-issuing blockchain products that primarily focus on the price of an asset relative to the blockchain.