Coinbase Debuts Tokenized Stocks On Base Network

Cryptocurrency exchange Coinbase Global has launched tokenized stocks on its Base network, joining Kraken and Binance in the emerging field of on-chain stock trading. Investors can now trade shares of companies like Apple, Nvidia, and Alphabet as tokenized versions of the actual stocks. Coinbase stated that these tokens hold a 1:1 representation of the underlying shares.

The exchange plans to expand its offerings with more tokenized stocks in the near future. Base is an Ethereum Layer 2 network operated by Coinbase, known for its secure and cost-effective transactions. Tokenized stocks, which are digital representations of traditional company shares, track the real-time price of the underlying stock.

The tokens also account for dividends and stock splits. Coinbase emphasized that these tokens are a direct claim on the underlying shares and can be held in self-custody wallets. The COIN stock price has fallen by 41% over the past year, currently trading at $180.35 per share.