Coinbase (NASDAQ:COIN) has announced “true” tokenized stocks as part of a “System Update,” which includes a series of announcements.
Tokenization, or digital securities, can reference various real-world assets as outlined by the Securities and Exchange Commission (SEC). Some platforms “wrap” shares and describe them as tokenized. While digital securities are the future, full adoption will take some time.
In a post on X, Coinbase explained:
“The first real, 1:1 backed tokenized stocks are coming. → Own actual tokenized shares of U.S. companies → Trade, hold, and redeem – all onchain → Automatically receive dividends No derivatives, no IOUs. Welcome to the future of stocks.”
The System Update event will take place at 3 PM ET later today.
Coinbase has trailed the broader market, now trading far below its 52-week high of over $440 per share, at $168 per share today. The company is frequently viewed as tied to Bitcoin’s price. At the same time, its last quarterly earnings report disappointed investors. A solid update today could help drive investor interest as much of the oxygen in the trading room has been consumed by the SpaceX IPO.