Coinbase Announces Tokenized US Stocks with Dividend Payments

Coinbase, the largest US cryptocurrency exchange, announced on the 16th it will offer tokenized stocks backed by US equities. Users will be able to trade, hold, and redeem the tokens on-chain while receiving automatic dividend payments, with initial availability limited to regions outside the United States. The move comes as competition intensifies in the tokenized securities space, with Kraken's parent company Payward announcing on the 3rd a platform for global retail investors to participate in US IPOs, and Robinhood already offering tokens for over 200 US stocks and ETFs in Europe.

Coinbase Tokenized Stocks Enable On-Chain Trading and Automatic Dividends

Coinbase described the offering as "the first true 1-to-1 collateralized tokenized stocks." Users will be able to buy, hold, and redeem the tokenized stocks on-chain, with dividends distributed automatically. The tokenized stocks will initially be available only in regions outside the United States.

CEO Armstrong Differentiates Product from Derivatives and IOUs

Coinbase CEO Brian Armstrong stated the product differs from many existing tokenized stock offerings. Armstrong pointed out that "current solutions from others are merely derivatives or IOUs, not true ownership." He explained that with the announced product, "users will own a portion of the actual stock on-chain," emphasizing the combination of true ownership benefits with the advantages of tokenized assets.

Kraken Parent and Robinhood Expand Tokenized Stock Offerings

Competition in the tokenized securities sector has already intensified. Payward, the parent company of cryptocurrency exchange Kraken, announced on the 3rd it will soon offer services allowing global retail investors to participate in US IPOs through its tokenized stock platform XStocks. Online brokerage giant Robinhood has begun offering tokens for trading over 200 US stocks and exchange-traded funds (ETFs) in Europe.

FAQ

What did Coinbase announce on the 16th? Coinbase announced it will offer tokenized stocks backed by US equities, allowing users to trade, hold, and redeem the tokens on-chain while receiving automatic dividend payments.

How does Coinbase's tokenized stock product differ from competitors? CEO Brian Armstrong stated that unlike other solutions which are derivatives or IOUs, Coinbase's product gives users ownership of a portion of the actual stock on-chain, combining true ownership with tokenized asset benefits.

What tokenized stock services have competitors announced? Payward announced on the 3rd a platform for global retail investors to access US IPOs via XStocks, while Robinhood offers tokens for over 200 US stocks and ETFs in Europe.