SEC Tokenization Exemption Sparks Competition Between Robinhood and Coinbase
The Securities and Exchange Commission (SEC) has given the crypto industry a five-year exemption to offer tokenized versions of stocks for trading.
This development is expected to expand the market for tokenized traditional assets from around $40 billion today to approximately $2.3 trillion by 2030, according to consulting firm Oliver Wyman.
Two major players in the crypto space, Robinhood Markets (HOOD) and Coinbase Global (COIN), are poised to benefit from this emerging market.
Robinhood has a head start with its retail brokerage for trading non-tokenized stocks and has already issued 301 tokenized stocks worth $148.8 million as of September 28, with plans to add features such as redemptions and voting rights.
Coinbase's product, on the other hand, fits the new rules more closely and has a first-mover advantage if Robinhood experiences delays in getting its ducks in a row.