Coinbase Pushes for Tokenized Equity Trading with SEC Approval Request

Highlights:

• Coinbase is seeking SEC approval to offer tokenized stocks through blockchain networks.
• Tokenized equity trading has gained support as U.S. policy shifts and crypto firms explore new financial products.
• SEC officials have signaled support for innovation in the digital asset space in recent months.

Coinbase plans to expand its services by introducing blockchain-based stock trading. The exchange is asking the U.S. SEC for approval to offer digital shares of public companies. These shares, known as tokenized equities, would allow users to trade stocks on a blockchain network. This approach could reduce costs and allow trading at any time of day.

Advertisement

Coinbase seeks SEC approval to launch ‘tokenized stocks’

Coinbase is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a "tokenized stock" trading service. The company's chief legal officer, Paul Grewal, said the plan is a "key priority" for Coi…

— Bpay News (@bpaynews) June 18, 2025

Chief legal officer of Coinbase, Paul Grewal, said the plan is a top priority for Coinbase. He also stated that Coinbase is seeking a no-action letter from the SEC. The letter would affirm that the agency has no intentions of prosecuting in case the service proceeds. Nonetheless, the legal officer did not indicate whether Coinbase had filed an official application with the SEC yet.

Exciting? Yes. Important? Absolutely. But breaking news? Not exactly. We've been saying since earlier this year that @SECGov should enable markets to unlock tokenized securities. Tokenized debt, equity, and investment funds present an opportunity for tailored regulation for…

— paulgrewal.eth (@iampaulgrewal) June 17, 2025

There are no tokenized stocks in the U.S. at the moment. Coinbase has been pushing for clear approval since early this year. If approved, Coinbase could directly compete with platforms like Robinhood and Charles Schwab, which offer stock trading through traditional systems.

Tokenized Equity Trading Gains Momentum Amid Shifting U.S. Policy

Interest in tokenized equity trading is growing among crypto exchanges. Kraken, a United States-based cryptocurrency exchange, recently revealed its plan to launch tokenized stock trading outside the U.S. The new service will allow users to trade over 50 U.S.-listed stocks and exchange-traded funds. Kraken will use the Solana blockchain for these transactions.

Coinbase’s effort comes as the U.S. environment becomes more favorable toward crypto companies. Following the change of government in January, the SEC dismissed a number of cases against digital asset platforms. Coinbase was previously the target of one of those lawsuits in 2023. This change has motivated more companies to consider blockchain-based financial products.

Meanwhile, SEC officials have signaled support for innovation in the digital asset space. Acting Chair Mark Uyeda recently spoke about a potential sandbox model. This model would let companies test services like tokenized stocks in a limited setting. Commissioner Hester Peirce added that these trials could help identify what works both technically and commercially.

SEC Chair Paul Atkins also commented on plans for an innovative exemption. This action would enable the platforms to test out new blockchain products in regulated environments. As much as these measures do not assure endorsement, it is a sign of increased support for the use of blockchains in finance.

Coinbase Eyes MiCA Compliance While Addressing Security Concerns

While seeking SEC approval in the U.S., Coinbase is also preparing for expansion in Europe. The exchange is in the process of acquiring a license under the Markets in Crypto-Assets framework. This license would allow Coinbase to serve customers across the EU under a single set of rules. It would also support Coinbase’s goal of offering more global services.

Despite its expansion plans, Coinbase recently dealt with a serious breach. Reports showed that cybercriminals bribed support agents located outside the U.S. These attackers gained access to user data and launched phishing attacks. The incident raised concerns about the safety of user data. However, Coinbase remains focused on launching tokenized equity trading.

Advertisement