Coinbase, the major digital currency platform, is making a play to step into the world of traditional stock trading—only this time, with a blockchain twist. The company is working to gain regulatory approval from the United States Securities and Exchange Commission (SEC) for a service that would allow its users to trade tokenised shares, turning conventional equities into blockchain-based assets.
This move would open the door for digital versions of company stocks to be traded in the same way cryptocurrencies are handled. By doing so, Coinbase is hoping to blend old-school financial instruments with cutting-edge digital infrastructure. Should it succeed, this effort could see the firm square off with mainstream trading platforms like Robinhood, shaking up the space where traditional finance meets innovation.
Image 1 (Source: The Org)
Digital shares could change the game
At the heart of the proposal is the concept of tokenised equities. These are digital assets that reflect ownership in real-world stocks, such as those of major corporations. Instead of trading through traditional markets and intermediaries, users would be able to buy and sell these shares on blockchain systems. The digital versions would still track the underlying stock’s performance, but would exist on a decentralised ledger.
This sort of offering is currently off-limits to U.S.-based users. While some crypto businesses have managed to provide such services to international clients through offshore partnerships, American residents remain locked out. Coinbase’s new push is aimed at changing that, though it still needs to jump through a few regulatory hoops.
Paul Grewal, the company’s Chief Legal Officer, described this initiative as a central focus for the business. The team is aiming to secure a signal of non-objection from the SEC, commonly known as a “no-action” letter. If issued, this would mean the regulator sees no reason to pursue legal enforcement over the activity—effectively giving the company the green light to press on.
Timing is everything for Coinbase
Coinbase’s timing is more than a coincidence. Since Donald Trump’s administration resumed in January, the atmosphere around cryptocurrency regulation has become notably more flexible. The company appears to be benefiting from this changing tide. Back in February, the SEC pulled back on a legal action it had brought against Coinbase the previous year, a move seen by many in the industry as a major shift in tone.
Now, with the regulatory heat turned down a notch, firms like Coinbase are finding room to manoeuvre. The firm is betting that now is the right moment to bring blockchain-based equity trading into the mainstream—especially as it eyes global growth and broader adoption.
Meanwhile, other players are following a similar path. Kraken, another established crypto platform, announced in May that it intends to launch tokenised stock trading for users outside the United States. Though the approaches differ, the race is clearly on to lead in this emerging space.
Looking beyond U.S. borders
While Coinbase sets its sights on the American market, it’s also making big moves abroad. The firm is closing in on a major regulatory milestone in the European Union. Under the bloc’s new Markets in Crypto-Assets (MiCA) framework, Coinbase is poised to receive a licence that would give it permission to operate across member states.
This development is part of the company’s broader push to expand its global footprint. The regulatory clarity offered by MiCA gives firms like Coinbase a solid foundation to offer services across Europe without jumping through endless legal hoops in each country.
That said, the journey hasn’t been without turbulence. The company recently found itself in the headlines following a concerning breach. Reports surfaced suggesting that external support staff, located outside the United States, were bribed by cybercriminals seeking access to internal systems. The result was a spate of phishing attacks targeting users. It’s a reminder that even giants in the space must stay on their toes when it comes to security.
Still, Coinbase hasn’t missed a beat. In May, its shares joined the S&P 500 index, making it the first crypto-native company to enter this elite circle. That marked a significant achievement, underscoring how far the firm has come since its early days. At the time of writing, the stock was trading at $252.20—a dip of roughly 3.6% over the prior 24 hours, yet the inclusion in the index remains a feather in its cap.
Image 2 (Source: Bitcoinist)
Blending old finance with new tools
With its latest push, Coinbase is trying to rewrite the rules of engagement between crypto and traditional markets. If the SEC gives the nod, trading tokenised equities in the U.S. could become a reality. That would offer investors the chance to deal in stocks through a system that operates beyond the usual 9-to-5, bringing efficiency and flexibility to a space long defined by structure.
Blockchain technology allows trades to be processed rapidly and transparently, reducing the need for intermediaries and trimming the fat from the trading process. For retail investors, that could mean lower costs and faster execution—key benefits in any marketplace.
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Still, the plan hinges on regulators giving Coinbase the thumbs-up. Without that assurance, the entire concept remains just a promising idea on paper. But as things stand, the signs are looking more hopeful than they have in recent years.
With one foot in traditional markets and the other in crypto’s fast lane, Coinbase appears set on bridging the gap. If the cards fall right, tokenised equity trading might soon become more than a niche idea—it could be the next big leap in how the world invests.
