Coinbase has formally requested approval from the U.S. Securities and Exchange Commission to offer tokenised equities in the country. The scheme would let users buy and trade digital tokens representing company shares, potentially enabling 24/7, faster, and lower-cost equity trading by leveraging blockchain technology. If successful, Coinbase could directly compete with established brokerages such as Robinhood and Charles Schwab.
This strategic initiative marks a pivotal expansion beyond crypto into traditional financial markets. Coinbase’s chief legal officer Paul Grewal described the push as a “huge priority,” emphasising the potential to establish a regulated framework for tokenised securities. To proceed, the company is seeking a “no-action letter” or an exemptive relief from the SEC—mechanisms that would allow official clearance to operate without enforcement action.
The tokenisation of shares aims to reduce transaction costs, accelerate settlement and expand market accessibility. Proponents believe that blockchain-based equities could revolutionise trading. However, global regulators have flagged challenges including low secondary-market liquidity and absence of unified global standards.
Coinbase’s renewed interest follows a prior attempt to introduce a tokenised version of its own stock at the time of its 2020 direct listing—an effort ultimately blocked by the SEC. Now, with the SEC’s evolving crypto task force and indications of a more favourable regulatory environment under the Trump-appointed leadership of acting chair Mark Uyeda, Coinbase envisages a window of opportunity.
Institutional enthusiasm appears to be rising, with CFO Alesia Haas noting that prior regulatory obstacles—“brick walls,” as she put it—may now be negotiable. CEO Brian Armstrong similarly asserted the potential for round-the-clock trading innovation and applauded engagement with the SEC’s crypto task force.
Despite this optimism, regulatory hurdles remain. Coinbase is not registered as a broker-dealer, and any platform facilitating trading in tokenized equities must satisfy existing legal requirements. The SEC had previously sued Coinbase in 2023, alleging the company operated an unregistered brokerage—a lawsuit later dismissed in 2025 under the Trump-appointed SEC leadership.
If granted a no-action letter, Coinbase would gain regulatory assurance that trading tokenised equities is compliant under current laws—a reassurance deemed critical to advance institutional adoption in the sector. Some industry commentators suggest that while tokenised equities are gaining traction internationally, U.S. regulatory clarity is key to unlocking broader institutional uptake.
Globally, exchanges like those operated by Kraken are already piloting tokenised shares—known as xStocks—in international markets outside the U.S.. These moves reflect a broader shift: analysts such as Colin Butler of Polygon have predicted tokenised real‑world assets could reach a market potential of up to $30 trillion in the long term.
Within the U.S., Coinbase has sought to shape the regulatory conversation. In March, the company submitted 36 detailed recommendations to SEC Commissioner Hester Peirce, articulating a blueprint for distinguishing between digital commodities and digital securities, and calling for secondary-market clarity. The SEC also hosted roundtable discussions earlier this year with industry participants on asset tokenisation, including former Coinbase counsel Alex Zozos.
Securing approval would align Coinbase with a mosaic of international initiatives exploring tokenised share trading, potentially enabling U.S. investors to trade equities with crypto-like efficiency. Yet adoption remains tied to demonstration of adequate liquidity, interoperability, and regulatory consistency—areas where global standards are still evolving.
While no timing for product rollout has been disclosed, Paul Grewal stressed that obtaining a no-action letter is essential to injecting confidence into institutional investors, paving the way for a new class of regulated digital securities.
Arabian Post – Crypto News Network
