SEC Tokenized Stock Framework Opens Up New Revenue Streams for Coinbase and Circle

The US Securities and Exchange Commission's (SEC) new tokenized-stock framework is expected to create significant revenue opportunities for several companies, including Coinbase, Circle, and Robinhood.

The framework, which was recently implemented as a five-year Innovation Exemption, allows qualifying venues to trade tokenized U.S. listed stocks on public blockchains using permissioned automated market makers.

Coinbase, in particular, stands to benefit from the new framework, with potential revenue streams extending beyond transaction fees. The company's ownership of Base, its Ethereum Layer 2, also provides a possible route into onchain securities infrastructure.

Robinhood, which already offers stock tokens overseas, may also see benefits from the new market, but will need to adapt its existing structure to comply with the SEC's requirements. This includes providing equivalent shareholder rights to token holders and navigating potential issuer objections.