Coinbase Explores Launch of Tokenized COIN Stock on Base
Coinbase, a leading cryptocurrency exchange, is considering the launch of tokenized shares of its COIN stock for U.S. users on its Ethereum layer-2 network, Base. However, the plans remain in their exploratory phase, with Coinbase awaiting regulatory clarity before proceeding.
Tokenized Stock for U.S. Users Under Discussion
Jesse Pollak, a developer at Base, hinted at the possibility of tokenized COIN shares being introduced in 2024. “We are exploring the idea of bringing COIN shares on Base,” Pollak said in a Jan. 3 post on the X platform. “Eventually, every asset in the world will be on Base.”
Tokenized COIN shares are already available to non-U.S. users through platforms like Backed, which specializes in tokenized real-world assets (RWAs). However, Coinbase faces regulatory hurdles in the U.S. that could impact the rollout of such an offering.
“We need regulatory clarity and improvements that embrace onchain as an open platform to unlock this for everyone,” Pollak added.
The Growing Market for Tokenized Assets
Tokenized RWAs, including securities, represent a $30 trillion market opportunity globally, according to Colin Butler, Polygon’s global head of institutional capital. The burgeoning sector has attracted significant attention as blockchain technology continues to intersect with traditional finance.
COIN Stock Rises Amid Political Shifts
COIN stock surged more than 20% in November, surpassing $300 for the first time since 2021, following Donald Trump’s presidential election victory. Analysts suggest that Trump’s administration may adopt a crypto-friendly stance, alleviating the regulatory pressures Coinbase faced under President Joe Biden.
Michael Miller, an equities researcher at Morningstar, noted, “We see Coinbase as a beneficiary of the election results. The firm’s staking business is likely to face less regulatory scrutiny under a Trump administration.”
The Need for Regulatory Clarity
Despite these developments, Coinbase and other crypto companies continue to navigate a murky regulatory landscape in the U.S. The Securities and Exchange Commission (SEC) has launched over 100 enforcement actions against cryptocurrency companies under the Biden administration, leading to calls for a broader, Congress-led framework for crypto regulation.
Investment bank Citi commented in a December research note, “The U.S. has begun to shift away from regulation by enforcement, but it still lags behind other major jurisdictions.”
Outlook for Tokenized Securities
The potential for tokenized securities, like COIN stock, hinges on the establishment of clear and comprehensive regulations. Coinbase’s move to tokenize COIN stock on Base could mark a significant step toward bridging the gap between traditional finance and blockchain, but regulatory clarity will be the decisive factor.
Keywords: Coinbase tokenized COIN, tokenized securities, Base Ethereum network, cryptocurrency regulation, COIN stock price, U.S. crypto laws, real-world assets tokenization.
