Coinbase Tokenized Stocks Clarified: Backed by Real Shares, Not Just Price Exposure

Coinbase CEO Brian Armstrong has clarified the distinction between tokenized equities and products that merely track stock prices. He said Coinbase's approach is to issue tokens backed by real underlying shares, held in custody through a bankruptcy-remote structure.

The first products launched in August for eligible investors outside the U.S., covering Nvidia, Apple, Meta Platforms, and Alphabet. These tokenized stocks are issued on Base under the B20 standard and are 1:1 backed by the underlying securities.

However, holding a Coinbase stock token does not automatically grant unconditional ownership rights. The redemption process is limited to KYC-approved institutional partners and authorized participants, and some investors may need to complete verification and eligibility processes before exercising their rights.