Coinbase is ready to test the boundaries of crypto and traditional finance again.
The U.S.-based exchange, Coinbase is actively seeking approval to offer tokenized equities to its American customers, according to Paul Grewal, Coinbase’s chief legal officer. If approved by regulators, this could let users buy blockchain-based versions of major U.S. stocks like Apple, Tesla, or Nvidia, right alongside their crypto holdings.
Tokenized equities are digital tokens that represent shares of real-world companies. Instead of holding stocks through a traditional brokerage, users could own blockchain-based tokens tied to those same assets. In theory, this could open the door to faster settlement, round-the-clock trading, and lower fees.
But the plan comes with a regulatory hurdle. Coinbase isn’t a registered broker-dealer, something that’s been at the center of its past legal battles. The U.S. Securities and Exchange Commission (SEC) sued Coinbase in 2023 for operating without proper licenses, though that case was dropped earlier this year.
Now, Coinbase is asking the SEC for a no-action letter or exemptive relief, essentially official permission to move forward without triggering another enforcement lawsuit.
Why It Matters
If Coinbase gets the green light, it would put them in direct competition with brokerages like Robinhood and Charles Schwab. For crypto exchanges, it’s about blurring the lines between traditional finance and blockchain-based assets.
Kraken, another major exchange, has already jumped into this space. A few weeks ago , Kraken announced that tokenized versions of stocks like Apple, Tesla, and Nvidia would soon be available for trading on its platform for customers outside the U.S.
Coinbase’s move would mark the first serious attempt to bring this model to regulated American markets.
Wall Street Meets Web3
Coinbase is signaling that the future of investing might not be divided between brokers and crypto platforms anymore.
For decades, traditional finance and crypto operated on separate tracks. Now, they’re merging. If successful, Coinbase’s push could pressure legacy brokerages to rethink how they serve younger, tech-savvy investors who expect real-time access and lower fees.
But for all the ambition, it’s still early. Regulatory clarity is the missing piece before tokenized stocks can truly go mainstream in the U.S.
COTI’s Journey: Expanding Across Exchanges
For COTI holders, this push by Coinbase adds an interesting layer of timing. COTI's ERC20 is already listed on Coinbase but with COTI V2 now live, the spotlight is shifting to its new chapter.
COTI V2, the project’s upgraded privacy-centric Layer 2, is now live on several major exchanges, including KuCoin, Bitrue, and MEXC, with Gate.io just recently joining the lineup. Each listing marks another step in bringing the upgraded ecosystem to more users worldwide. With Coinbase exploring tokenized equities and broader blockchain offerings, the natural question is starting to form:
Is a COTI V2 listing on Coinbase’s horizon? Let’s see how this unfolds.
Final Thought
Tokenized stocks could change how people invest, blending crypto flexibility with traditional assets. But for now, Coinbase’s push feels like the early innings of a much bigger regulatory fight.
If approved, it could reshape what crypto exchanges are and what they offer. If rejected, it might simply push more innovation offshore. Either way, the battle to connect blockchain with everyday finance is only just beginning.
