Coinbase is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch tokenized stock trading, a move that could expand its business to the territory of traditional brokerage firms.
Paul Grewal, chief legal officer of crypto exchanges, Tell Reuters The common case is intended to provide a digital version of stocks (called token stocks) that will be traded on the blockchain network rather than through regular exchanges. The model can allow for 24/7 transactions, reduce transaction costs and eliminate clearing intermediaries.
However, the way forward depends on how the SEC responds. Coinbase wants to obtain no-action letters or exemption from law enforcement, both of which will provide regulatory scope for the provision of these products in the United States
The push marks a strategic shift in Coinbase, which has already owned a broker-dealer license through dormant members. If the initiative succeeds, it can position the company with retail brokers such as Robinhood (Hood) and Charles Schwab (Schw) who are suitable for a similar investor base, as well as Crypto Exchange Kraken.
Symbol stock trading in the United States is not yet legal, but platforms like Kraken Driving This type of product is overseas. Coinbase’s timing is aligned with a more friendly regulatory climate under new SEC chairman Paul Atkins; the agency has dropped several crypto-related lawsuits and set up a working group dedicated to digital assets.
Nevertheless, Greval declined to say whether Coinbase had formally filed the request. He said the confidence brought about by clear SEC guidance has gone missing.
“Is it exciting? Yes. Posted On social media.
“Tokenized debt, equity and investment funds provide opportunities for tailored regulations for securities that are offered and traded through digital local approaches.”
