Coinbase, a big name in cryptocurrency, is trying to get permission from the US Securities and Exchange Commission (SEC) to let people buy and sell tokenized stocks on its platform.
What are Tokenized Stocks?
Basically, it’s like owning a piece of a company, but instead of a traditional stock certificate, you get a digital token representing that ownership. This token lives on a blockchain, the same technology behind cryptocurrencies like Bitcoin.
Coinbase’s Plan
Coinbase’s Chief Legal Officer, Paul Grewal, says this is a top priority for them. They believe tokenized stocks will open up the US financial markets to more people, making it easier and cheaper to invest. It would also compete with other investment apps like Robinhood and Revolut.
The SEC’s Role
The SEC hasn’t said anything officially yet. Interestingly, the US doesn’t really have a market for these tokenized stocks right now. If Coinbase gets approval, they’d be the first to offer this in the US, which could pave the way for others to follow suit.
A Shift in Government Attitude?
Things have changed. Not long ago, the government was cracking down on crypto companies for selling what they considered unregistered securities. Now, the attitude seems more open to innovation in the crypto space. Coinbase has already applied to the SEC and is waiting for a decision. Grewal hopes a positive response will give investors more confidence in this new approach.
The Bigger Picture: Crypto and Stocks
There’s a lot of excitement around combining crypto and traditional stocks. For example, Justin Sun’s TRON token is heading to a US stock exchange through a merger. Many believe that stocks are becoming the next big thing in the crypto world. One investor even said that most conversations in the crypto space are now focused on stocks.