Crypto exchange Coinbase has introduced 1:1-backed tokenized U.S. stocks, introducing what the exchange describes as real onchain ownership of publicly listed companies for eligible international investors.
Speaking at CNBC’s Squawk Box on Tuesday, CEO Brian Armstrong said the new product allows users to own actual shares represented onchain, rather than derivatives or synthetic instruments that merely track stock prices. The offering is initially aimed at markets outside the United States, where access to U.S. equities remains limited for many retail investors.
Tokenized equities have long been promoted as a bridge between traditional finance and blockchain. Coinbase’s latest offering seeks to differentiate itself by issuing tokenized shares backed one-for-one by real U.S. equities rather than synthetic exposure.
Coinbase says tokenized shares represent real ownership
According to Armstrong, every tokenized stock issued through Coinbase is backed by an underlying share of the corresponding U.S. company. Unlike existing tokenized equity products that often rely on derivatives or IOUs, the new offering is designed to provide investors with the rights associated with traditional stock ownership, including dividend distributions and shareholder rights, while allowing the assets to be traded and transferred onchain.
Coinbase said users will be able to trade, hold, redeem, and transfer tokenized shares around the clock using blockchain infrastructure.
Expanding access to U.S. markets
Armstrong said the product is intended to address a longstanding challenge for investors outside the United States. While many international investors can gain exposure to U.S. stocks through local brokers, access remains limited or unavailable in several jurisdictions. Armstrong argued that billions of people currently lack practical access to leading U.S. companies despite growing global demand for American equities.
By placing regulated equities on blockchain rails, Coinbase aims to make U.S. stock ownership more accessible while retaining the legal rights attached to the underlying shares.
Onchain trading adds blockchain features
In addition to ownership rights, Coinbase said tokenized stocks will offer features commonly associated with digital assets. These include continuous trading, blockchain-based settlement, and the ability to transfer tokenized shares directly between users without relying on traditional brokerage infrastructure.
The company said combining regulated equities with blockchain technology could simplify ownership and cross-border transfers while preserving one-to-one backing with the underlying securities.
Product debuts alongside broader tokenization push
The tokenized stock announcement is part of Coinbase’s broader strategy to expand blockchain-based financial products beyond cryptocurrencies.
During the same conversation, Armstrong highlighted the company’s recently introduced pre-IPO perpetual contracts, which allow eligible international users to gain exposure to private companies before they go public. He said the product is designed to broaden retail access to private market opportunities that have traditionally been available only to institutional and accredited investors.
Armstrong also welcomed recent regulatory developments in the United States surrounding crypto perpetual futures, arguing that bringing derivatives trading under domestic regulatory oversight could reduce reliance on offshore exchanges, where most crypto derivatives volume currently takes place.
Tokenization competition continues to grow
Coinbase’s latest announcement comes as tokenization gains momentum across the financial industry, with exchanges and blockchain firms increasingly seeking to bring traditional financial assets onchain.
The company says its approach differs from many existing tokenized stock offerings because each token is backed by an actual U.S. share, rather than providing only synthetic price exposure. If adopted at scale, the model could expand access to U.S. capital markets while introducing blockchain-based settlement and transfer capabilities to traditional equity investing.
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