On December 17th, Coinbase, the largest cryptocurrency exchange in the United States, released several announcements on its X account. The introduction of tokenized stocks on the exchange was one of the announcements, an important move in bridging the divide between conventional equity marketplaces and blockchain infrastructures.
Initially, the move will be marketed in the United States and later internationally. Although Coinbase already enables its US customers to buy conventional stocks, tokenization represents a shift by converting shares into blockchain-based tokens that can be traded directly on-chain.
Tokenized stocks are digital representations of traditional equity shares issued by regulated entities. Each token corresponds to an actual share on a one-to-one basis and is recorded on a blockchain.
Ownership, transfer, and settlement happen through smart contracts rather than conventional clearing houses.
Coinbase has framed this as part of a broader vision where financial assets migrate on-chain over time. This perspective is widely shared across the financial industry.
Larry Fink has previously stated that tokenization is still in its early stages and could eventually incorporate equities, bonds, real estate, and other assets.
The appeal of tokenized stocks lies in efficiency and accessibility. Traditional equity trades typically settle on a T+2 basis, meaning the investor has to wait two business days for final settlement.
Blockchain-based equities can settle within minutes, reducing counterparty risk and freeing up capital faster.
Tokenization also facilitates 24/7 trading, which gives investors the chance to respond without delay to earnings or macroeconomic events instead of waiting for market hours.
Another important benefit is fractional ownership, which lowers the entry barriers for high-priced stocks and allows easy transfers among platforms.
Tokenized equities that would have merged custody, clearing, and settlement into one on-chain process could lower trading lifecycle costs considerably.
According to Token Terminal, the sector’s market capitalization reached roughly $1.2 billion in 2025, with sharp growth spikes in September and December. Analysts often compare the current phase to the early stablecoin market, which expanded into a $300 billion segment.
The issuance of tokenized equity products has already started at several exchanges. Kraken and Bybit utilize the Ethereum-based infrastructure for tokenized stocks, whereas Gemini has started supplying similar products to the European market.
The growth of institutional interest came in 2024 when Backed Finance launched its xStocks package on Ethereum, which included a wide range of tokenized equities.
Nasdaq has also filed documents with the SEC to offer tokenized stocks on its platform, a clear indication of the trend towards acceptance of such products in the finance sector.
Also Read: Telegram and Kraken Team Up to Bring Tokenized Stocks to Over 1 Billion Users
The vast majority of tokenized assets rely on Ethereum standards, thus making Ethereum a primary beneficiary of this trend.
Tokenized stocks will be deployed by Coinbase on its Ethereum Layer-2 network called Base, where lower transaction costs will be combined with Ethereum’s security.
It is believed that tokenized stocks will take over the traditional way of issuing and trading shares as regulatory clarity improves and adoption increases.