Coinbase Facilitates Token Shares Offering within the United States
Bold Moves: Coinbase Eyes US Approval for Tokenized Stocks
The crypto sphere never rests, and Coinbase, a major player in the market, is eyeing its next big venture. As revealed by Paul Grewal, the company's Chief Legal Officer, Coinbase is pushing hard to secure permission from the U.S. Securities and Exchange Commission (SEC) to offer tokenized stocks domestically. This move could pit Coinbase against traditional brokers in a fierce battle.
Grewal views this initiative as a "top priority" for the company, aiming to acquire either a no-action letter or an exemption from the SEC. Such action from the regulatory body would signal that it won't pursue legal action against Coinbase for offering tokenized stocks, digital representations of real stocks on the blockchain, enabling round-the-clock trading, albeit without direct shareholder rights.
This step is part of Coinbase's effort to expand beyond crypto-asset trading, seek new revenue streams, and foster greater institutional acceptance. However, uncertainty from regulators has historically stymied wider acceptance of trading blockchain-based securities. But with Donald Trump in the White House, the regulatory landscape for innovative financial products could take a positive turn.
Tokenized Stocks: Perks and Pressure
Tokenized stocks boast several advantages: faster settlement, constant trading, and potential cost reduction compared to traditional infrastructure. Yet, these have been largely out of reach for U.S. investors. Coinbase's move comes hot on the heels of competitor Kraken's announcement of "xStocks" – tokenized versions of over 50 stocks and ETFs, but only available outside the U.S. (in Europe, Latin America, Africa, and Asia).
If approved by the SEC, Coinbase's foray could significantly disrupt the US broker market. Committed crypto enthusiasts will stay on board.
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References:
- Coinbase Goes for Broke, Targets SEC for Tokenized Stock Approval
- Coinbase Aims to Offer Tokenized Stocks after SEC Approval
- Coinbase to Offer Tokenized Stocks Pending SEC Approval
- Coinbase's Bold Move: Applying for Tokenized Stock Offerings
- Coinbase's Tokenized Stock Venture: What to Expect
The move by Coinbase to secure SEC approval for tokenized stocks signifies an effort to diversify their services, potentially challenging traditional brokers in the US market. If successful, tokenized stocks could bring benefits such as faster settlement, constant trading, and cost reduction to US investors.
Such a development could significantly disrupt the US broker market, seeing as Coinbase aims to acquire either a no-action letter or an exemption from the SEC to offer these digital representations of real stocks on the blockchain.
