Coin baseThe leading crypto exchange in the USA is reportedly looking for an official approval to offer “tokenized shares” on its platform, a step that would bring the company into direct competition with retail brokers such as Robinhood and direct competition Charles Schwab.
Paul Grewal, Chief Legal Officer at Coin basetold Reuters The fact that the company was looking for the new product after the start of the security and Exchange Commission was a “great priority”.
When the coin base was asked for additional comment, he confirmed the news on the luck and pointed out an additional one Social Media Post From Grewal, in which he wrote: “Exciting? Yes. Important? Absolutely. Absolutely. But breaking news? Not exactly. We have said that since the beginning of this year @Secgov Should it enable the markets to unlock tokenized securities. Tokenized debts, equity and investment funds offer the possibility of tailor -made regulation for securities that are offered and traded using digitally native methods. ”
Grewal followed that With a link To a Marsch response from Coinbase on a SEC examination in which they are asked about the public in order to regulate how the crypto room can be regulated. The 41-page reaction of the company to the SEC focused, among other things, on the further development of discussions about tokenized shares.
The second did not react immediately Assets‘s request for comment.
“Tokenized stocks”Refers to an investment product in which stocks of A publicly traded company are converted into A Digital token This can be acted on a blockchain as if it were a form of cryptocurrency. This would enable customers to exchange these “shares” around the clock, since blockchain transactions can take place at any time of the day instead of the regular merchant times of Wall Street.
Tokenized stocks have been a long -term destination for Coinbase. For the first time, the company tried to launch digitized shares in 2021, in the same year as its initial public offer, by issuing a tokenized version of his own shares that Chief Financial Officer from Coinbase, Alesia Haas said In March of this year. She added that the plan of Gary Gensler, chairman of the SEC era of the bid era, was stopped, but that Coinbase under another presidential administration, which the crypto industry accepted, would renew its push for tokenized shares.
“I now believe that our US supervisory authorities want to search for product innovation and go forward,” she said. “I am now excited that we may be able to hire these conversations with the Task Force of the SEC again so that we may be able to present security parkals.”
Most companies that offer securities trading must be registered as broker dealers, such as E*trade or loyalty from Morgan Stanley, which is not coin base. One way for coinbase to receive approval from the SEC to offer tokenized stocks is to apply for a “no action letter”, said Grewal. This would be a way for the SEC not to commit themselves against tokenized securities or to recommend a asset measure.
“With an action letter, an issuer of a tokenized equity or a platform that wants to offer secondary trading in these shares can have a certain trust and a certain comfort that the SEC has adopted its view of why this product is compliant,” said Grewal.
It is not clear whether Coinbase is trying to maintain the approval for tokenized securities through a “no letter of action” or by other legal means.
