Coinbase, the largest cryptocurrency exchange in the United States, is considering providing tokenized shares of COIN stock to domestic users through the Ethereum Layer2 network Base.
This move could propel Coinbase to the forefront of financial innovation by combining traditional stocks and blockchain technology.
Coinbase to Launch Tokenized Stocks...Regulatory Clarity is Key
Jesse Pollak, the lead developer of Base, stated that Coinbase is in the early stages of exploring this plan. He acknowledged that regulatory compliance is a major obstacle.
Pollak emphasized that Coinbase is committed to resolving these issues to ensure the safe and compliant launch of tokenized assets.
"We are in the exploration stage and are working to understand what needs to be unlocked from a regulatory perspective to bring assets onto Base in a safe, compliant, and forward-looking way." - Jesse Pollak, Lead Developer of Base
Currently, the tokenized COIN shares are only available to international users through decentralized platforms. Pollak stated that expanding this accessibility within the United States depends on clear regulatory guidance. These developments could open up blockchain-based financial systems to a wider audience.
Meanwhile, Pollak hinted that the tokenized COIN shares could be the first of many products on the Base network. Over the past year, the Ethereum Layer2 network has gained significant attention, with its Total Value Locked (TVL) exceeding $3.84 billion, making it a major player in the industry.
Pollak expressed confidence in the platform's potential to manage assets worth up to $1 trillion, which would contribute to Base's establishment as a hub for next-generation financial solutions.
"We will bring $1 trillion in assets onto Base, and we will do it faster than anyone else." - Jesse Pollak, Lead Developer of Base
Coinbase's move towards tokenization is not surprising, given the rapid growth of this sector last year. Industry leaders, such as Bitwise CEO Hunter Horsley, believe that tokenization can reshape the stock market by creating a more inclusive capital market system.
Horsley emphasized that tokenization can enable small businesses to access the public stock market without the traditionally required large-scale fundraising.
"There are currently about 4,600 companies in the US that have access to the public stock market. The NAICS estimates that there are over 200,000 companies in the US that generate over $10 million in revenue. Of course, not all companies want to be publicly traded, but many simply cannot because the scale required is too large. Tokenization is opening up a new, democratized capital market." - Hunter Horsley, CEO of Bitwise
In fact, Coinbase was the first cryptocurrency exchange to be listed in the United States, with a market value of around $70 billion. Austin Campbell, an adjunct professor at Columbia Business School, recently praised the company, stating that it played a crucial role in resisting the excessive regulatory overreach in the US cryptocurrency industry.
