Coinbase launched tokenized versions of US stocks on its Base blockchain Monday, giving eligible investors outside the US a way to trade shares onchain.
The initial offering includes Apple, Nvidia, Meta and Alphabet. Each token is backed 1-to-1 by the corresponding stock held by regulated broker and custodian Alpaca, according to Coinbase. The move adds to a growing effort by financial firms to bring traditional assets onto blockchains.
Stocks Move Onchain
Coinbase issues the tokens under the Abu Dhabi Global Market’s regulatory framework and plans to add more stocks as demand grows. The tokens can move between wallets without whitelists, while investors can trade them around the clock on supported onchain platforms.
Related: Coinbase-Backed Group Endorses 32 Crypto-Friendly US Candidates
Access remains limited to eligible investors outside the US. Coinbase uses its B20 framework to link each token to the underlying shares, allowing investors to gain exposure to their value without directly holding the stocks.
Tokenization Expands
Coinbase is using Chainlink price feeds for the tokens, allowing decentralized-finance platforms to potentially use them for trading and lending. The tokenized-securities market could reach $5.5 trillion by 2030, according to Citigroup.
Coinbase Chief Executive Officer Brian Armstrong has also promoted stablecoins as a financial tool. “Crypto gives people a way out,” he said, citing their potential to protect savings from inflation and weak currencies.
Related: Stablecoin Supply Hits $303B — But Is Crypto Liquidity Actually Reaching Traders?
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Source: https://coinedition.com/coinbase-brings-apple-nvidia-and-meta-stocks-to-blockchain/
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