Coinbase, Robinhood, Circle could be early winners of SEC's tokenized-stock push, analysts say
Analysts suggest that Coinbase and Robinhood could benefit from the SEC's new innovation exemption allowing for tokenized U.S. stocks on public blockchains. While Coinbase is well-positioned due to its existing infrastructure, Robinhood may require further product development to meet the SEC's strict shareholder rights requirements.
Why it matters
This regulatory shift could bridge the gap between traditional equity markets and decentralized finance, potentially increasing institutional adoption of blockchain.
The Securities and Exchange Commission’s five-year innovation exemption creates a path for tokenized U.S. stocks to trade through automated market makers on public blockchains. To qualify, the tokens must preserve shareholder rights such as dividends and voting, while venues face limits on trading volume and the number of stocks they can offer.
Goldman Sachs said Coinbase could benefit across several parts of its business.
Its existing tokenized-equity offering already has many of the characteristics required by the SEC, including shareholder rights and dividends comparable with the underlying stock, the analysts said. Coinbase CEO Brian Armstrong also said earlier this week that voting rights are “coming soon,” a key piece in giving token holders the same rights as investors in the underlying shares.
Coinbase also has an institutional custody business and Coinbase Tokenize, which provides infrastructure for other firms putting assets onchain, the Goldman report added.
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