Coinbase Unveils Tokenized Stocks and USDC-Secured Credit Card

Coinbase has taken another step towards becoming an 'everything exchange' by introducing tokenized US stocks and a USDC-secured credit card. The new products are designed to provide users with more options for managing their finances, including trading traditional equities on a blockchain.

The tokenized stock product is backed by real shares held in custody, providing holders with automatic dividends and on-chain ownership. This is a departure from existing tokenized-stock products, which often rely on synthetic instruments or derivatives.

However, the launch of this product outside the US comes with a catch: it cannot be accessed by US residents due to regulatory issues. Instead, users in the US will have access to derivative-based perpetual-style equity index products through CFTC-regulated futures.

The credit card secured by USDC is designed for customers who would be rejected by traditional credit bureaus. It allows users to earn Bitcoin rewards on every purchase and build a conventional credit score through on-time payments.