Coinbase, one of the largest cryptocurrency exchanges, is exploring the possibility of offering tokenized shares of its stock (COIN) to U.S. users on its Ethereum layer-2 network, Base. Jesse Pollak, a Base developer, shared the update on Jan. 3 via a post on the X platform.
While tokenized COIN shares are already available to non-U.S. users through platforms like Backed, Pollak emphasized that the initiative is still in its early stages. Coinbase is waiting for greater regulatory clarity before moving forward.
Potential for Tokenized Shares on Base
Pollak stated that “every asset in the world will be on Base” in the future, hinting at Coinbase’s long-term ambitions to bring real-world assets (RWAs) onto the blockchain. However, he clarified that there are currently “no concrete plans” for tokenized COIN shares in the U.S., as the company is navigating the complexities of U.S. securities laws.
“We need regulatory clarity and improvements that embrace on-chain as an open platform to unlock this for everyone,” Pollak explained.
Tokenized Real-World Assets: A Growing Market
The tokenized real-world asset market, including securities, represents a significant $30 trillion global opportunity, according to Colin Butler, Polygon’s global head of institutional capital. Tokenized securities, in particular, could revolutionize financial markets by offering broader access and increased efficiency.
In the U.S., however, regulatory uncertainty continues to hinder progress in the space.
Impact of Regulatory and Political Developments
The regulatory environment in the U.S. remains a major hurdle for tokenized securities like COIN shares. Under President Joe Biden, the U.S. Securities and Exchange Commission (SEC) has launched over 100 enforcement actions against crypto companies, often citing violations of securities laws.
Michael Miller, an equities researcher at Morningstar, noted that Coinbase has faced significant regulatory challenges but could benefit from a more crypto-friendly environment under the new administration. Following Donald Trump’s presidential election win in November, crypto stocks like COIN saw notable gains, with many analysts expecting his administration to take a less restrictive approach to the cryptocurrency industry.
Citi, in a December research note, highlighted that while the U.S. is beginning to move away from “regulation by enforcement,” its legislative progress still lags behind other major jurisdictions.
Coinbase’s exploration of tokenized COIN shares on Base underscores its commitment to blockchain innovation. However, the company must tread carefully as it awaits clearer guidance from U.S. regulators. If successful, this initiative could mark a significant step toward mainstream adoption of tokenized assets in the U.S.
