- Coinbase is reviewing plans to tokenize its $COIN stock and other securities in the US.
- The company’s CFO stated this with the SEC creating a new crypto task force.
- Tokenized stock is aimed at integrating traditional finance with blockchain technology.
Coinbase is revisiting its previous goal to release a tokenized version of its stock $COIN. This move was first attempted years ago but failed due to regulatory opposition during then. However, the onset of Trump’s administration and the new crypto task force by the SEC, which has dismissed the regulatory lawsuit against Coinbase, has paved the way for tokenized stocks.
The company’s CFO, Alesia Haas, addressed Morgan Stanley’s TMT Conference stating that, “I now believe that our U.S. regulators are looking for product innovation and looking to move forward”. She recalled that Coinbase had initially planned to launch a tokenized version of its $COIN stock during its 2020 public listing, but the SEC’s strict rules prevented it from happening. She also added that she’s excited that Coinbase can now be able to
I’m now excited that we may be able to reengage those conversations with the SEC’s task force. We may be able to bring forward security tokens and some international products into the US market that have already seen broad adoption among global crypto traders.
Coinbase’s original 2020 S-1 filing outlined its version for integrating security into its platform, emphasizing its potential to transform financial markets. The company’s stock went public on the New York Stock Exchange in April 2021 at around $342 per share and currently trades for $222.45 per share.
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CEO Brian Armstrong also suggested that renewed conversations with the regulators could lead to advancements in tokenized assets, allowing traditional financial instruments to be represented on blockchain networks. He also stressed that the potential for tokenized stocks, bonds, and other financial instruments to gain grip is very high. He said,
There’s a real opportunity to bring more assets on-chain and trade them in ways that are more efficient.
Despite this optimism, the integration of tokenized stocks in a stock trading platform still faces a few barriers including regulatory approval, compliance with financial standards, and difficulties in integrating with traditional markets. However, Armstrong is set to participate in the first White House Crypto Summit with President Donald Trump on March 7, 2025, highlighting the growing connection between crypto and policymakers. This signals U.S. President Trump’s administration and the SEC’s crypto task force have posed a crypto-friendly stance in the industry, which could potentially approve the launch of tokenized stock in the near future.
