Compiled by: Bai Hua Blockchain

Recently, Coinbase CEO Brian Armstrong stated on X that the company is actively exploring the possibility of tokenizing its stock. This statement has once again brought the real-world assets (RWA) to the forefront of the crypto market discussion.

However, Coinbase's move is not just conceptual hype, but a concrete step forward. According to inside sources, Coinbase has had preliminary discussions with the U.S. Securities and Exchange Commission (SEC) and is studying how to allow Token-based shareholders to enjoy the same rights as traditional shareholders.

For a long time, the RWA field has been one of the key directions for the long-term development of the crypto market, maintaining significant momentum and market scale. According to data from RWA.xyz, as of March 2025, the total market value of global RWA products (excluding stablecoins) has reached $17.93 billion. By 2030, the total market value of RWA is expected to soar to $16 trillion, exceeding the current total market value of the crypto industry. In other words, the future presents a huge blue ocean opportunity.

Of course, stock tokenization brings tremendous benefits to the crypto market. For investors, understanding the concept, advantages, and impact of stock tokenization on the broader crypto ecosystem will be key to navigating future market trends.

01
The Promising Potential of Stock Tokenization

1. Technological Foundation and Innovation-Driven Growth

The realization of stock tokenization relies on the support of blockchain technology and smart contracts. The decentralized, transparent, and immutable characteristics of blockchain provide a solid foundation for the digitization of stock assets. Smart contracts can automatically execute transaction rules, achieve instant clearing and settlement, and significantly improve transaction efficiency. This technological innovation not only reduces the costs of traditional intermediary institutions, but also reduces the risk of manual operations, establishing a new trust mechanism.

Currently, with the continuous development of blockchain technology, platforms such as Ethereum and Solana have made significant improvements in transaction speed and security. These advancements have created favorable conditions for the successful implementation of stock tokenization.

2. Regulatory Environment and Compliance Exploration

Stock tokenization involves securities, finance, and digital assets, naturally attracting the close attention of global regulatory authorities. In recent years, global regulators have begun to recognize the huge potential of the digital asset market and explore regulatory frameworks that are compatible with it.

As mentioned earlier, Coinbase has had preliminary discussions with the U.S. Securities and Exchange Commission (SEC) to explore how Token-based shareholders can enjoy the same rights as traditional shareholders. This indicates that while prioritizing investor protection and market stability, regulators also have an open attitude towards innovative digital asset models. As regulatory policies are improved and cross-border regulatory coordination mechanisms are established, stock tokenization is expected to achieve legal compliance.

3. Market Demand and Liquidity Enhancement

The global capital market has an increasing demand for more efficient and transparent trading models, and stock tokenization fits this trend well. The traditional stock market often faces limitations in trading time, geography, and lengthy clearing cycles, while the digital asset market provides 24/7 global and instant trading.

Stock tokenization not only provides investors with a lower participation threshold, but also significantly improves asset liquidity. This growing market acceptance and demand for tokenized stocks will be a powerful driving force for their widespread adoption.

4. Security Assurance and Risk Mitigation

Of course, stock tokenization is not a completely new concept, but its realization has long been hindered by the security issues of crypto assets. Security vulnerabilities and frequent incidents of smart contract failures have led to hacking incidents, causing serious concerns in the traditional financial market.

To gain widespread market trust in stock tokenization, technical risks must be effectively managed. Only when security vulnerabilities are fully addressed can stock tokenization move from conceptual discussion to real-world application.

02
The Inherent Advantages of Stock Tokenization

In a sense, stock tokenization can be seen as an extension and deepening of the real-world assets (RWA) field. Traditional stocks, as a key financing tool for companies, represent a part of the real-world economic value. By tokenizing stock assets, investors can gain more convenient trading channels, while achieving seamless integration of real-world assets and the digital asset market.

In other words, stock tokenization helps to expand the application boundaries of RWA, imbue traditional assets with new vitality, and accelerate the transformation of asset liquidity and value discovery mechanisms.

1. Benefits to Various Participants in the Crypto Market

Institutional Investors: Large investment institutions and funds have shown a strong interest in improving trading efficiency, reducing costs, and digitizing assets. Stock tokenization provides new options for optimizing asset allocation.

Retail Investors: The high thresholds and geographical limitations of the traditional stock market have prevented many retail investors from fully participating. Stock tokenization lowers the entry barriers, allowing global investors to access quality assets.

Blockchain Startups: Technological innovation is the core driving force of the blockchain industry. Many startups are developing trading platforms and financial products based on tokenized assets, further driving the development of the entire ecosystem.

2. Dual Advantages for the Stock and Crypto Markets

Stock tokenization not only brings many benefits to the traditional stock market, but also injects more innovative elements into the crypto market:

Increased Liquidity: Tokenized assets can be traded globally 24/7, eliminating the geographical and time constraints of traditional markets.

Reduced Transaction Costs: Blockchain technology reduces the role of intermediaries, lowering clearing and settlement costs, thereby improving the trading efficiency of investors.

Transparency and Security: The immutable nature of blockchain provides higher transparency and security for asset transactions.

Broader Participation: Stock tokenization lowers the entry threshold, allowing more retail investors and small-to-medium-sized institutions to participate in the global stock market and share in the benefits of asset appreciation.

03
Conclusion

In summary, stock tokenization is not only a digital transformation of traditional financial assets, but also a sign of a profound structural change in the global financial market. By integrating blockchain technology, smart contracts, and advanced security frameworks, stock tokenization has shown tremendous potential in enhancing liquidity, reducing costs, and enabling global trading.

Although there are still challenges in regulation, technology, and security, the continuous progress in these areas will pave the way for the successful adoption of stock tokenization. This evolution will not only create new investment opportunities for businesses and investors, but also drive the global capital market towards a more efficient, transparent, and interconnected future.

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