SEC Token Trial Boosts Coinbase and Robinhood Prospects
The U.S. Securities and Exchange Commission (SEC) has moved ahead with a regulatory trial that could benefit companies like Coinbase, Robinhood, and Circle.
The five-year 'innovation exemption' framework allows for tokenized stocks to be traded on public blockchains through automated market makers (AMMs).
Coinbase's existing tokenized-stock product already meets many of the SEC's requirements, including dividend features similar to those of the underlying shares.
Goldman Sachs said Coinbase could benefit across multiple business lines, including its institutional custody business and Coinbase Tokenize.
Roger McNamee was not mentioned in the source. The company would still need additional infrastructure to operate a trading platform directly.
The SEC's proposed framework is built around AMMs, while Coinbase's exchange currently uses a central limit order book (CLOB).