Coinbase to Offer 1:1 Tokenized U.S. Stocks

Coinbase announced on Tuesday that users will be able to buy, trade, hold and redeem tokenized versions of U.S. stocks backed 1:1, with dividends paid automatically onchain. The company posted the initial details on social media and added that it would release more information later Tuesday.

In its social post Coinbase wrote: “The first real, 1:1 backed tokenized stocks are coming. Own actual tokenized shares of U.S. companies. Trade, hold, and redeem, all onchain. Automatically receive dividends. No derivatives, no IOUs.”

The exchange described the tokens as actual tokenized shares tied to U.S. companies that are fully backed and redeemable onchain. The post indicated dividends would be transferred automatically to the blockchain addresses holding the tokens.

Several other trading platforms are developing onchain stock offerings. Robinhood has launched an initiative on Arbitrum to list tokenized U.S. stocks and exchange-traded funds. Kraken and global exchanges such as Binance and OKX, along with multiple decentralized platforms, are exploring ways to offer token-based access to equities. Some venues currently provide stock-linked derivatives to non-U.S. customers without guaranteeing the underlying shares are held in reserve.

Tokenized shares can enable trading outside regular market hours, potentially allowing 24/7 exchange of ownership. They can also allow corporate actions and ownership records to be managed onchain. Coinbase highlighted automatic dividend distribution and onchain redemption as features of its product.

U.S. regulators and lawmakers are discussing how tokenized stock trading should align with securities and exchange rules. Ongoing questions include custody and investor protection standards, transaction reporting obligations, and how dividends and shareholder rights are administered when tokens move between blockchain addresses.

Other recent entrants include Backpack Securities, launched by the exchange Backpack and founded by former FTX employees, which offers both traditional and tokenized stock services. Coinbase stated that further specifics on rollout timing and product mechanics would be provided later Tuesday.