Coinbase Enters Tokenized Stock Market with Real Ownership

Coinbase has announced plans to introduce tokenized U.S. stocks that offer real ownership and dividends, further blurring the lines between traditional finance and cryptocurrency markets.

The exchange's CEO Brian Armstrong emphasized that its approach differs from existing tokenized stock products, which are often structured as derivatives or IOUs. According to Armstrong, Coinbase's tokens will give users 'all the benefits of true ownership (e.g. dividend upside), with all the benefits of tokenized assets.'

The launch of tokenized stocks is part of a broader trend in the industry, with several exchanges and traditional finance firms exploring similar products. Kraken recently added tokenized U.S. stocks through its xStocks platform, while Robinhood plans to offer tokenized equities in Europe.