Coinbase plans to seek approval from the US Securities and Exchange Commission (SEC) to offer tokenized stocks, paving the way for 24/7 stock trading. The exchange would become the second platform to offer such a service after Kraken - and the first to do so in the US.
According to Reuters, Coinbase has announced its intention to request a No-Action Letter or an exemptive order from the SEC to offer tokenized equities in the United States. This move could position the company more squarely among brokerage platforms like Robinhood and Charles Schwab.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
What are tokenized stocks?
Tokenized stocks represent traditional equities as digital tokens on a blockchain. Investors don’t directly own the underlying security but hold a digital token that confers ownership rights. According to Coinbase CLO Paul Grewal, this enables 24/7 trading, faster settlement, and lower costs-provided the SEC grants approval.
The market is currently unregulated, and no tokenized stock products exist in the US In some international markets, however, Kraken has already launched its xStocks offering, although US customers are excluded.
Challenges and regulatory conditions
Coinbase requires a No-Action Letter or a specific SEC exemption to proceed. This is the only way to bypass the need for an active broker-dealer license-a status that Coinbase holds but currently does not utilize.
Critics point to challenges such as low liquidity in the secondary market and the lack of global regulatory standards-obstacles that continue to hinder broader regulatory and institutional acceptance.
Industry significance
Coinbase is taking this step amid a crypto-friendly regulatory climate under the SEC leadership appointed during the Trump administration. Proceedings against Coinbase, Binance, and Kraken have been dropped, while a task force is considering new rules
A successful tokenized stock offering would not only position Coinbase as a competitor to traditional brokers-it could redefine digital stock trading in the US.
Should the SEC approve the plan, Coinbase would become not just a market participant but also a potential pioneer. Around-the-clock trading could further bridge the gap between the crypto ecosystem and traditional markets. Whether Robinhood, Schwab, or others will follow remains to be seen-but one thing is certain: Coinbase is taking the lead on regulatory innovation.
