Overview
- Coinbase has introduced tokenized stocks for users outside the U.S. on its Layer-2 network, Base.
- The initial offerings feature fractional shares of tech giants Apple and Nvidia.
- These tokens can be stored in self-custody wallets or traded on the Aerodrome platform.
The Base team, which operates Coinbase’s Ethereum Layer-2 network, announced on Monday that it has launched tokenized stocks for eligible users located outside the United States.
According to a post on X, each token corresponds to a share held by Alpaca, a regulated broker and custodian. This means that token holders have a direct claim to the actual share rather than merely a derivative linked to its value.
Myriad: What’s next for Ethereum's price? Make your prediction here.The Base team emphasized, "If you hold the token, you hold a direct claim on the share. Coinbase Tokenized Stocks are the real deal."
The initial offerings include fractional shares of Apple and Nvidia, which users can manage in self-custody wallets, trade on Aerodrome, or leverage as collateral on the decentralized lending platform Aave. Additionally, these tokens can be used in liquidity pools, automated portfolios, indexes, and derivatives.
These tokenized stocks utilize Coinbase’s B20 token standard, which allows for dividend processing and stock splits without altering token balances or disrupting decentralized finance (DeFi) positions. Availability may vary by region and could require identity verification and other checks.
“Markets shouldn't sleep,” the team noted, highlighting that tokenized stocks can be traded in always-on automated market maker (AMM) pools, enabling users to respond to earnings calls or macroeconomic events at any time, rather than being confined to traditional trading hours.
Coinbase had previously announced plans in June to introduce tokenized stocks that are backed 1:1, ensuring that each token represents a real share held in custody, with dividends automatically distributed. These offerings were expected to be available to non-U.S. users by July.
As crypto platforms increasingly integrate traditional stocks onto their networks, tokenized stocks are gaining popularity. Recently, Robinhood launched its own Layer-2 network, Robinhood Chain, with tokenized stocks among its initial products.
Base has indicated that more Coinbase-issued stocks and other real-world assets will be introduced in the upcoming weeks. "The financial system is being rebuilt onchain, and the builders on Base are the ones making it happen," the team concluded.