Coinbase Enters the Tokenized Stock Wars
Stocks
Coinbase has officially entered the tokenized stock market by launching its first assets on the Base blockchain, featuring Nvidia, Meta, Apple, and Google. These tokens utilize the newly developed B20 standard, an ERC-20 evolution designed specifically for stablecoins and real-world assets to enable 24/7 trading. Unlike synthetic trackers, each token represents a 1:1 claim backed by shares held at the broker-custodian Alpaca, with dividends processed automatically at the token level. This architecture allows the assets to function seamlessly as collateral within DeFi protocols without breaking. While Base enters a competitive landscape currently dominated by Ondo Finance, Kraken, and Binance, founder Jesse Pollak aims to scale the offering to thousands of stocks. The initiative serves as a critical component of Coinbase's "Everything Exchange" vision, positioning Base as a primary hub for on-chain equity-based borrowing and yield strategies. By leveraging the existing Base ecosystem, including protocols like Aerodrome and Aave, Coinbase intends to capture significant market share in the $3 billion tokenized equities sector.
Key points
- ▸Coinbase launched tokenized Nvidia, Meta, Apple, and Google shares on the Base blockchain.
- ▸Tokens use the B20 standard, providing 1:1 backing via broker-custodian Alpaca.
- ▸The $3 billion tokenized equities market currently features competitors like Ondo, Kraken, and Binance.
- ▸Base aims to integrate tokenized stocks into DeFi protocols like Aerodrome and Aave.
Background
Base is an Ethereum Layer 2 blockchain incubated by Coinbase, built on the OP Stack to provide a secure, low-cost, and developer-friendly environment. It serves as the infrastructure layer for Coinbase's broader vision of an 'Everything Exchange,' facilitating the on-chain movement of value beyond simple crypto-asset trading.
Relevance
8.5/10