Overview
- Coinbase’s chief legal officer, Paul Grewal, confirmed the company is preparing to submit a formal request for tokenized equities and called the initiative a “huge priority.”
- If approved, tokenized equities would allow shares to trade as digital tokens on blockchain networks with faster settlement, lower costs and around-the-clock trading.
- To offer tokenized stocks in the U.S., Coinbase must obtain either a no-action letter or exemptive relief since it is not registered as a traditional broker-dealer.
- SEC Chair Paul Atkins has signaled support for tailored exemptions and the agency is evaluating a regulatory sandbox for crypto exchanges to test new digital-asset offerings.
- Rival platforms like Kraken have already piloted tokenized stock products overseas, setting the stage for heightened competition with brokerages such as Robinhood and Charles Schwab.