Coinbase Set to Reveal Tokenized U.S. Equities

Coinbase is expected to announce the launch of tokenized U.S. equities at its December 17 event. This move positions the firm against traditional brokerages.

Coinbase is expected to announce the launch of several new features next week. This includes proprietary tokenized US Equities. The announcement is expected at the firm’s Dec. 17 event. Screenshots of the upcoming application have been floating around the internet for weeks. The company has not formally revealed the product.

According to Bloomberg, Coinbase Global Inc. plans to announce prediction markets. It will further launch tokenized equities. These are two of the fastest-growing products in the financial markets.

In-House Tokenization Targets Regulatory Relief

Coinbase, the US’s largest crypto exchange, will be going public with its products at a showcase. The tokenized stocks will be launched completely in-house. Unlike some of its rivals, Coinbase is building out its tokenized stock offerings without partners.

The regulatory status of tokenized U.S. equities is also complicated. They are not legal to trade in the U.S. without specific regulatory relief. This normally requires a “no-action letter” from the SEC. In addition, Coinbase has been making efforts to secure authorization as needed. This would circumvent the active broker-dealer license requirements for this particular service.

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This strategic move puts Coinbase in a position to compete directly with traditional brokerages. These include big boys such as Robinhood and Charles Schwab. Other crypto platforms have already offered tokenized equities, including Kraken and Robinhood. However, these are usually limited to non-US customers.

However, the tokenization of real-world assets (RWAs), including stocks, is a fast-growing area. It is a key area of study in decentralized finance (DeFi). The value of on-chain RWAs recently topped $23.9 billion alone. This speaks volumes about the huge potential of the emerging market.

A company spokesperson refused to comment on details. They said that they will reveal more information in the course of the livestream event. Thus, the market is waiting for confirmation on the scope and features of the new products.

Prediction Markets Also Slated for December 17 Reveal

The anticipated stock of prediction markets comes after recent regulatory clarity. The CFTC recently approved Gemini’s request to operate a Designated Contract Market. This serves as a sign of a changing regulatory environment for event contracts. Coinbase will probably enter a market where the volumes are experiencing rapid growth.

Furthermore, the in-house development of the tokenized equities seems to indicate a strong commitment. Coinbase aims to control the compliance and tech standards. This approach is in line with the firm’s focus on secure and regulated digital asset services.

The December 17 event is poised to prove to be a critical moment for Coinbase. In addition, it is an indication of the firm’s desire to bridge the traditional finance space and the crypto ecosystem. Therefore, the announcement will most likely receive a lot of attention from investors and competitors. This is a new phase of rivalry between the brokerage and DeFi industries.

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