Tokenized Stocks Could Unlock $4B in Unbrokered Markets, Says Coinbase CEO

Coinbase Global Inc. CEO Brian Armstrong believes tokenized stocks could revolutionize global investing by opening up access to four billion people who are currently unbrokered.

According to Armstrong, half of the planet cannot get access to high-quality U.S. companies to invest in, and they are stuck holding cash or lower-quality investments.

Armstrong points out that tokenized equities on modern financial rails can change this, citing Coinbase's offering as an example. Unlike prior tokenized-equity products, which Armstrong described as 'a derivative or a synthetic' that don't convey true ownership, Coinbase's offering is backed one-to-one by the underlying stock.

The shift to tokenized equities is expected to be further supported by the pending Clarity Act, which Armstrong describes as 'right on the horizon'. This bill is seen as similar to how the Genius Act supported stablecoins. Armstrong also highlights that access issues extend beyond emerging markets, citing a survey where 83% of Americans say the financial system is not working for them.

Recent market data supports Armstrong's point, indicating tokenized stock trading volumes have reached record levels, signaling growing institutional and retail interest in blockchain-based equity exposure.