- Coinbase announced it will launch tokenized stocks for trading outside the United States, enabling 24/7 markets and providing full ownership and dividend rights.
- Binance also officially launched its tokenized stocks product, “bStocks,” which are backed by assets purchased and held in the US via broker Alpaca.
- Regulatory frameworks for tokenized securities, especially in the US, remain under development, as seen with the DTC receiving a no action letter last December.
- Both platforms are leveraging existing brokerage and custody licenses to facilitate the tokenization and distribution of traditional stocks on blockchains.
Coinbase revealed today that it is launching tokenized stocks, a move set to enable continuous stock trading and full ownership rights for investors outside the United States. The company already provides conventional stock trading for US clients, but this new offering leverages blockchain technology. However, a US-based tokenized stock product from Coinbase is not yet available due to evolving regulations.
Consequently, the offshore legal structure will likely involve Coinbase’s existing US broker-dealer for custody and onshore stock purchases. Tokenization for European distribution would require a MiFID II license, which Coinbase Financial Services Europe possesses for EU stock operations. Meanwhile, Binance also officially launched its competing “bStocks” product, which provides similar full ownership benefits.
In Binance’s case, the underlying stocks are bought and sold in the US via broker Alpaca, which also provides custody. Distribution is facilitated through Binance’s licensed broker in the UAE, though the offering of 7,000 securities means tokens are created on demand. For now, bStocks are not yet accessible in the European Union, creating a temporary divergence in market access between the two crypto giants’ new products.
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