Coinbase Rekindles Efforts To Introduce Tokenized Securities In The US

Coinbase Inc. COIN is revisiting its ambition to bring tokenized securities to the U.S., a move it first attempted years ago but abandoned due to regulatory opposition.

What Happened: The renewed push comes as the Donald Trump administration signals a more accommodating approach toward crypto, prompting changes at the U.S. Securities and Exchange Commission that could create room for blockchain-based financial products.

The SEC's formation of a crypto task force in January, under Acting Chair Mark Uyeda, has given Coinbase hope that security tokens—digital representations of traditional financial assets—could finally gain regulatory acceptance in the country.

“I now believe that our U.S. regulators are looking for product innovation and looking to move forward,” said Coinbase CFO Alesia Haas during an industry event hosted by Morgan Stanley.

She recalled that Coinbase had initially planned to launch a tokenized version of its COIN stock during its 2020 public listing, but strict SEC rules at the time prevented it from happening.

"We tried to go public on our own products," Haas explained. "And we could not, and we ran into brick walls."

Security tokens function similarly to traditional stocks and bonds but use blockchain for enhanced transparency, faster transactions, and greater accessibility.

With international markets already experimenting with tokenized securities, Haas believes Coinbase could help introduce these innovations to the U.S.

"We may be able to bring some international products that exist into the U.S. market that we know are broadly adopted amongst crypto traders around the world," she added.

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Why It Matters: Coinbase's original 2020 S-1 filing outlined its vision for integrating security tokens into its platform, emphasizing their potential to transform financial markets.

The company has since developed a regulatory framework for blockchain-based securities to help navigate legal complexities and facilitate adoption.

CEO Brian Armstrong has also been vocal about tokenized securities, highlighting their advantages over traditional market structures.

“I’m also pretty interested in tokenized securities and equities," Armstrong stated during a recent earnings call. "I think that it offers a lot of promise to consumers around being able to trade 24/7.”

As Armstrong prepares to attend Trump's upcoming White House crypto summit, where he is expected to meet with policymakers and industry leaders, Coinbase hopes to advocate for a regulatory landscape that accommodates security tokens and on-chain financial assets.

With blockchain technology continuing to influence traditional finance, Coinbase's push to modernize securities trading through tokenization could represent a significant evolution in how assets are issued and exchanged.

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