Coinbase (NASDAQ:COIN) tokenized stocks are now on Base using its B20 standard. The group quickly points out that these are “real ownership” and not a “workaround,” as each digital asset represents 1-to-1 shares held by a custodian. The digital asset is not a synthetic product or a wrapper. Coinbase says these are the “real deal,” not synthetic like some of its competitors.
Coinbase previously said tokenized shares were on the way.
Base is an Ethereum Layer 2 blockchain launched by Coinbase. Its mainnet went live on August 9, 2023, and was created to provide a secure, economical platform for digital assets, including securities.
Users can then lend, borrow, or use these securities as collateral across the Base DeFi ecosystem.
Authorized participants, institutional market makers that buy the shares, support tokenized shares. Those shares go to Alpaca, a regulated broker and custodian, in a bankruptcy-remote structure supervised by Abu Dhabi Global Market’s (ADGM) regulatory authority. ADGM has leaned into the digital asset sector, providing a favored location for many crypto innovators.
These tokenized shares are available 24/7 and globally accessible in allowable jurisdictions – outside the US, as the regulatory structure for tokenized shares is not yet clarified. Coinbase touted listings like Apple, Nvidia, Meta and Alphabet/Google.
Coinbase is on a mission to become the one platform to rule them all or the “everything exchange,” providing investing in crypto and traditional assets, banking features, and more modern applications, becoming the only financial platform a user needs. This will include private securities with primary and secondary transactions available. While more traditional online brokerages have been slow to embrace digital assets, these platforms have fallen behind.
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