A recent statement by Coinbase’s CLO Paul Grewal confirms that the crypto exchange and now publicly-traded company in the U.S is requesting authorization from the Securities and Exchange Commission (SEC) to offer tokenized equities.
Not Breaking News, But a Long-Term Push
Coinbase’s Chief Legal Officer, Paul Grewal, clarified that this initiative is not new, stating that the company has been advocating for tokenized securities since earlier this year. According to Grewal, tokenized debt, equity, and investment funds present an opportunity for tailored regulation, allowing securities to be offered and traded via digitally native methods.
While Coinbase may face some roadblocks in getting past regulatory hurdles, its offer aligns with recent developments in the U.S. derivatives and tokenized asset markets, highlighting the growing momentum behind crypto-integrated financial products
Only a couple of weeks ago, we reported how the Commodity Futures Trading Commission (CFTC) has seen a surge in interest in crypto derivatives, with nearly all proposals in response to its call for 24/7 trading focusing exclusively on digital assets.
Furthermore, recent discussions within the SEC and CFTC suggest an increased willingness to modernize financial markets, especially after the success of crypto perpetuals in U.S. markets. Exchanges like Bitnomial and Coinbase Derivatives have demonstrated strong demand for crypto-backed futures, paving the way for further regulatory engagement on tokenized equities.
But What Are Tokenized Equities?
Tokenized equities are blockchain-based versions of traditional stocks. Instead of effectively owning the stock, investors would own tokens that track said stock. A tokenized equity platform by Coinbase would allow investors to trade stocks at blockchain speed, any hour of the day, while also spending less on fees.
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