Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong highlighted on Monday growing traction for its tokenized U.S. stocks,
Coinbase-Backed Tokens Off to a Good Start
“Very early days, but good traction so far,” said Armstrong, as holders of Coinbase-issued stocks on the Base blockchain jumped 9,697% in a month.
On-chain analytics firm Token Terminal put total asset holders at 46,700, with tokenized versions of NVIDIA Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL) and Tesla Inc. (NASDAQ:TSLA) leading the chart.
What’s the Fuss About?
Coinbase launched its tokenized stocks last month for eligible users outside the U.S. Each digital token represents a real, 1:1-backed direct claim on an underlying traditional stock, held by a regulated custodian. The tokens also carry dividend and voting rights.
One of the key differentiators is that, unlike a traditional stock, Coinbase-issued stocks can be used as collateral for on-chain loans on platforms like Aave (CRYPTO: AAVE).
US to Welcome Tokenized Stocks?
Armstrong said Coinbase’s tokenization ambitions stretch far beyond publicly traded stocks, pointing to private companies, Treasuries and investment funds as potential candidates.
The total value of the tokenized stock market was at $3.4 billion, with over 4 million asset holders and $70 billion in monthly volume, according to Token Terminal.
Last week, the SEC created a five-year temporary regulatory pathway for trading certain tokenized U.S. stocks on blockchain-based venues, granting conditional exemptions from exchange and dealer-registration rules.
Price Action: Coinbase shares rose 0.47% in after-hours trading, according to Benzinga Pro. The stock closed 3.5% higher at $201.05 during Monday’s regular trading session.
According to Benzinga’s Edge Stock Rankings, COIN shows a stronger price trend in the short- and medium-term but lags over the long term.
See More: Top Momentum Stocks
Photo: Camilo Concha / Shutterstock.com
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