One of the leading cryptocurrency exchanges in the United States is currently seeking approval from the U.S. Securities and Exchange Commission (SEC) for tokenized equities offerings.
According to a recent report by Reuters, Coinbase is in discussions with the SEC to introduce blockchain-based stock trading, where company shares are converted into digital tokens representing the securities, similar to existing digital assets.
The advantages of tokenized equities include 24/7 trading, faster transaction times, and lower trading costs. While tokenized equities are not yet available for trading in the U.S., other American exchanges like Kraken are also exploring this area.
Reuters mentioned that Coinbase requires either a no-action letter or exemptive relief from the SEC to proceed with the offering, providing assurance that the product complies with regulations. Coinbase’s chief legal officer, Paul Grewal, did not confirm whether the company has formally requested approval from the SEC.
“With a no-action letter, an issuer or platform offering tokenized equities can have confidence in SEC compliance, which has been a barrier to institutional adoption so far,” Grewal stated.
This potential move would position Coinbase to compete with popular trading platforms like Robinhood. Stay updated by following us on X, Facebook, and Telegram. Don’t miss out – subscribe to receive email alerts directly to your inbox.
Check out the latest price action and explore The Daily Hodl Mix for more insights.
Generated Image: Midjourney
