Coinbase Receives SEC Approval for Tokenized Stocks Trading in the US
On September 17, 2026, the U.S. Securities and Exchange Commission (SEC) approved a temporary framework for trading tokenized U.S. equities, known as the Innovation Exemption. This regulatory change could provide Coinbase Global, Inc. (NASDAQ:COIN) with a new opportunity to expand its offerings beyond cryptocurrency, potentially aligning its services more closely with those of Robinhood Markets, Inc. (NASDAQ:HOOD).
Coinbase has already established the necessary infrastructure for tokenized stocks, having launched a product for eligible non-U.S. customers in August 2026 on its blockchain platform, Base. The initial offerings included tokenized stocks of major companies such as Apple, Nvidia, and Alphabet. These tokens are backed 1:1 by the underlying assets and are designed to provide dividend payouts and shareholder rights, allowing for round-the-clock trading across various decentralized finance (DeFi) platforms.
Despite this progress, the SEC's approval is temporary and conditional, lasting five years. Coinbase must demonstrate compliance with the SEC's requirements and adapt its existing international tokenization framework for the U.S. market. Investors are keen to see sufficient domestic demand for tokenized stocks to significantly impact Coinbase's financial performance, as the company aims to diversify its revenue streams. In the second quarter of 2026, 88% of Coinbase's net revenue came from non-Bitcoin spot trading, indicating a shift towards a broader asset trading platform.
While the regulatory approval removes a significant barrier for Coinbase, the company still faces challenges in proving that it can generate substantial revenue from tokenized equities. The investment outlook will depend on Coinbase's execution and the adoption of its new offerings in the domestic market.
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Source: KLEA News