SEC Exemption Gives Coinbase Early Edge in Tokenized Stock Trading

The Securities and Exchange Commission's (SEC) new exemption for tokenized stocks has given major players in the crypto industry an early advantage in trading U.S. equities on blockchain networks.

Coinbase, Robinhood, and Circle are among those that could benefit from this five-year measure, which allows qualifying tokenized shares to trade through automated market makers on public blockchains.

To qualify, the tokens must preserve shareholder rights such as dividends and voting. Trading venues also face limits on volume and how many stocks they can list.

Coinbase is particularly well-positioned to benefit from this exemption, according to Goldman Sachs analysts. Its existing tokenized-equity product already includes shareholder rights and dividend payouts comparable to the underlying stock.