Coinbase strives for SEC approval for tokenized shares

Coinbase wants to obtain permission for tokenized shares through the US stock exchange supervision SEC and thus introduce stock trading around the clock. According to Kraken, the stock exchange would be the second platform with such an offer – the first in the USA.

According to Reuters, Coinbase has announcedto ask the SEC for a no action letter or an approved exceptional friction to be able to offer tokenized shares in the USA. This step could move the company significantly into the field with brokerage platforms such as Robinhood and Charles Schwab.

What are tokenized stocks?

Tokenized shares transmit classic values ​​in digital tokens on a blockchain basis. Investors do not invest directly in the paper, but keep a digital token with a claim for ownership. According to Coinbase-Clo Paul Grewal, 24/7 trading enables faster processing and lower costs-provided the SEC grants the green light.

The market is currently not regulated, there are no tokenized stock products in the United States. In some international markets is about Octopuses with the Xstocks offer previously became active, with US customers being excluded.

Challenges and regulatory conditions

Coinbase needs a no -action letter or an express exception of the Sec. This is the only way to avoid the lack of broker dealing-a status that Coinbase has, but currently does not actively use.

Critics refer to challenges such as low liquidity in the secondary market and missing global regulatory standards – obstacles that have so far been in the way of regulatory and institutional acceptance.

Meaning for the industry

Coinbase takes this step in a crypto-friendly US regulatory policy under the Trump-called SEC leadership: Procedure against Coinbase, Binance and octopus were set, while a task force catches the eye.

A successful offer of tokenized stocks would not only make Coinbase a competitive company of established brokers – it could redefine digital stock trading in the USA.

If the SEC agrees, Coinbase would not only be market participants, but also potential pioneers. The 24/7 trade could further bridge the gap between crypto ecosystem and traditional markets. Whether Robinhood, Schwab or other consequences remains to be seen – it is clear that Coinbase is clearly driving the regulatory initiative.