Overview

• Coinbase is seeking approval from the U.S. Securities and Exchange Commission to offer tokenized equities, which convert company shares into blockchain-based digital tokens.
• The request depends on securing either a no-action letter or exemptive relief from the SEC because Coinbase is not registered as a broker-dealer.
• Proponents say tokenized equities could lower trading costs, speed up settlement and allow round-the-clock transactions.
• The SEC has not yet responded to Coinbase’s request after dropping its 2023 lawsuit and creating a digital assets task force under President Trump.
• Other digital asset platforms, including Kraken, have already begun piloting tokenized U.S. stocks in overseas markets.