Coinbase Says Its Tokenized U.S. Stocks Are Fully Backed and Redeemable

Overview

• Coinbase has publicly reaffirmed that its tokenized stocks are 1:1 backed by underlying shares, are redeemable through issuer processes, include dividend integration, and will add voting for eligible holders.
• The securities are issued offshore by Coinbase Onchain SPV Ltd. in the Abu Dhabi Global Market and the underlying U.S. shares are held by registered broker‑dealer Alpaca under a custody arrangement.
• Coinbase limits the offerings to non‑U.S. investors under Regulation S and uses Base’s B20 token standard to enforce identity checks and transfer restrictions across wallets and apps.
• Redemption and voting are conditional: only verified or “vested” holders can request delivery or submit instructions, and requests are subject to compliance reviews, share‑sale settlement and potential processing delays.
• Trading and DeFi use have surged on Base and decentralized exchanges, but analysts have raised questions about the SPV wrapper, the absence of issuer sponsorship from underlying companies, and how on‑chain claims map to traditional shareholder rights.