Coinbase (one of the largest US-based cryptocurrency exchanges) has reportedly asked the US Securities and Exchange Commission (SEC) for permission to offer tokenized stocks to American investors. The company claims that the move would allow people to buy and sell stocks more quickly, at lower cost, and at any time of day, reports Reuters.
The crypto exchange’s proposal aims to create a system where investors could purchase and trade real-world stocks through blockchain-based tokens, eliminating the need for traditional brokerage accounts. Under this system, trades would be recorded on a blockchain, creating an unchangeable and transparent ledger. Supporters argue that the model could improve efficiency and expand access, while still ensuring that each digital token is backed by a real share held by a licensed custodian.
However, there is a major challenge in bringing tokenized stocks to US investors, since current regulations do not allow regular retail investors to trade these blockchain-based assets. To address this, Coinbase is seeking special permission from the SEC. The company is exploring legal ways, like a no-action letter or exemptive relief, both of which could provide regulatory approval to launch the service without breaching existing securities laws.
If approved, Coinbase would become the first major US-based platform to offer tokenized stocks to the public, challenging traditional brokerages like Robinhood. Meanwhile, the company has not disclosed a timeline for a potential launch, and it remains unclear whether the SEC will approve the request.
The announcement comes as interest in digital versions of traditional financial assets is growing. In May 2025, Kraken (a competing crypto exchange) launched ‘xStocks’ in some international markets, allowing users to trade tokenized versions of US and European stocks. In the same month, Robinhood also revealed plans to use blockchain technology to offer trading of US assets in Europe.
The latest move becomes more significant since Coinbase has a history of clashes with the SEC, including a high-profile lawsuit in 2023. The lawsuit accused the firm of operating as an unregistered securities exchange, broker, and clearing agency. However, the case was dropped in April 2025 during Donald Trump’s second term as the US President, amid a shift toward more crypto-friendly regulation.
But even though the case was dropped, Coinbase still faces major challenges. Recently, in May 2025, the company disclosed a serious data breach that compromised the personal and financial information of over 69,000 customers. Hackers had bribed overseas support staff to access internal systems. In filings with the SEC at the time, the company estimated the cost of dealing with the breach could range between $180 million and $400 million.
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