Chris Curl,
Editor
June 26, 2025
Coinbase (NASDAQ: COIN) is looking to take another big leap—this time into the world of traditional stock trading.
The crypto giant is working to get the green light from U.S. regulators to offer tokenized equities to its users. If approved, it would mark a major shakeup in how stocks are bought and sold—and a potential game-changer for both Wall Street and Main Street investors.
Paul Grewal, Coinbase’s Chief Legal Officer, recently confirmed that the company is actively seeking regulatory approval from the SEC to let users trade tokenized versions of real-world stocks. In other words, instead of buying shares of Apple (NASDAQ: AAPL) or Tesla (NASDAQ: TSLA) through a regular brokerage, you’d own digital tokens that represent those shares—backed by blockchain tech.
Coinbase is framing this as a top priority, and for good reason. It puts them on a collision course with big-name brokerages like Robinhood (NASDAQ: HOOD) and Schwab (NYSE: SCHW)—except with 24/7 trading, lower costs, and faster settlements.
What Are Tokenized Equities?
Think of tokenized equities like digital wrappers around real company shares. You’re not buying the physical stock certificate, but a blockchain-based version of it that can live in your crypto wallet. These tokens would still represent real ownership—but they’d move like crypto: instantly, globally, and without traditional market hours.
It’s a whole new way to think about investing in the stock market.
Here’s the catch: none of this can happen in the U.S. without SEC approval. Coinbase is hoping for either a "no-action letter" or exemptive relief—essentially a formal way of saying, "You can do this, and we won't sue you."
Fortunately for Coinbase, the current SEC leadership is sending friendlier signals to the crypto world. New SEC Chair Paul Atkins has been openly critical of the previous administration’s tough-on-crypto stance, saying it's time for clear rules rather than enforcement crackdowns.
There’s even a dedicated Crypto Task Force now, led by Commissioner Hester Peirce, that’s focused on building a real framework for digital assets.
While Coinbase works the regulatory channels here at home, rival exchange Kraken has beaten them to the punch internationally. Kraken, in partnership with Backed Finance, recently launched “xStocks”—tokenized versions of over 50 major U.S. stocks and ETFs like Apple, Tesla, and Nvidia (NASDAQ: NVDA)—for non-U.S. users.
These digital stocks live on the Solana blockchain and can be traded 24/7, sidestepping the usual limitations of market hours. Kraken’s leadership believes this model could one day become bigger than stablecoins, thanks to the massive appeal of global, borderless investing.
Why Tokenized Stocks Could Be a Big Deal
Let’s break down the potential upsides:
- Trade anytime, anywhere: Forget Wall Street hours. These tokens would let you buy and sell stocks day or night—perfect for reacting to after-hours news or international events.
- Lower costs: Blockchain removes middlemen like brokers and clearinghouses, which could cut transaction fees by up to 70%.
- Instant settlement: Traditional trades take two days to settle. With tokenization, it’s nearly instant—thanks to smart contracts.
- Fractional ownership: Want a slice of a $3,000 stock? Tokenized shares can be broken into tiny pieces, making high-dollar investments accessible to everyone.
- Built-in features: Smart contracts can automate dividends, voting rights, and more—making investing smoother and more transparent.
Right now, tokenized stocks make up a sliver of the financial world—roughly $350 million in value. But that number is growing fast, with a 297% jump since early 2024. Some analysts think the market could reach $1 trillion in the not-so-distant future.
And that’s just the beginning. The global market for tokenized real-world assets (RWAs) is already over $18 billion.
The total value of U.S. stocks? More than $50 trillion.
You do the math.
If Coinbase pulls this off, it won’t just rattle regulators—it’ll rattle the competition. Robinhood disrupted the brokerage world with free trades and slick mobile UX, but tokenized stocks offer something even more radical: full-on crypto-style freedom.
Even Charles Schwab, with its deep product lineup and massive client base, could feel the heat. The entire infrastructure of the financial system—brokers, custodians, clearinghouses—could see disruption if tokenized trading goes mainstream.
What’s Next?
Coinbase is betting that stocks are ready for a Web3-style makeover. And with regulatory winds shifting, there’s a real shot that this goes from concept to reality.
Kraken’s early success abroad proves the appetite is there. If the SEC opens the door—and Coinbase walks through—we could be looking at a brand new era for investing. One where stocks trade like crypto, barriers drop, and Wall Street meets blockchain on equal footing.
Ready or not, the future of investing is getting tokenized and you don’t want to miss this opportunity.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle