Coinbase Launches Tokenized Stocks With Onchain Ownership and Dividends
In brief
- Coinbase launches tokenized stocks backed 1:1 by real U.S. equities with automatic dividend payments
- CEO Brian Armstrong emphasizes true ownership structure versus derivative-based competitor offerings
- Kraken, Robinhood, and BlackRock expand tokenized asset offerings amid market growth
- Tokenized securities could reach multitrillion-dollar market by decade's end per Citi projections
Real ownership, not derivatives
CEO Brian Armstrong distinguished Coinbase's approach from existing tokenized stock products. "You own an actual piece of the company onchain," he said, emphasizing that other current solutions are some form of derivative or IOU — not real ownership. The distinction matters. Tokenized stocks structured as derivatives don't grant investors voting rights, dividend claims, or the legal status of shareholders. Coinbase's 1:1 backed model aims to change that.
The announcement came ahead of a product event scheduled for 3 p.m. ET Tuesday, where the company plans to unveil a broader series of offerings spanning trading and financial services. The tokenized stocks will initially be available only in eligible jurisdictions outside the U.S., and the company did not provide a launch date, saying only that the products are "coming soon."
Crowded field, massive potential
Coinbase isn't alone. Kraken recently added tokenized U.S. stocks for customers in more than 180 countries through its xStocks platform, and Robinhood announced plans to offer tokenized equities in Europe. Traditional finance is moving fast too. BlackRock, Franklin Templeton and JPMorgan have all expanded tokenized fund and asset offerings.
The momentum reflects a fundamental promise. Supporters argue the technology can reduce settlement times, lower costs and allow assets to trade around the clock rather than during traditional market hours. Citi has projected that tokenized securities could grow into a multitrillion-dollar market by the end of the decade, a forecast that explains the rush to capture market share. Coinbase's move signals the exchange sees tokenized equities as a core pillar of its future product suite.
Frequently asked questions
How are Coinbase's tokenized stocks different from other offerings?
Coinbase's tokenized stocks are backed 1:1 by real equities and grant true ownership rights, including dividend payments and shareholder status. Competitors often structure their offerings as derivatives or IOUs, which don't convey actual ownership or voting rights.
Where will tokenized stocks be available?
Coinbase said the tokenized stocks will initially be available only in eligible jurisdictions outside the U.S. The company has not yet announced a specific launch date.
How big could the tokenized securities market become?
Citi has projected that tokenized securities could grow into a multitrillion-dollar market by the end of the decade. This growth is driven by benefits like faster settlement times, lower costs, and around-the-clock trading.
