Key facts
- Base is close to launching 1:1 asset-backed tokenized equities.
- Jesse Pollak, creator of Coinbase's Ethereum layer-2 network, stated the launch is 'imminent'.
- The product will represent real equity ownership, including dividends and shareholder rights.
- This approach contrasts with Robinhood's derivative-based tokenized stocks.
- Base is pivoting from a social-first strategy to focus on financial applications like trading and tokenized assets.
Base, the Ethereum layer-2 network backed by Coinbase, is nearing the launch of its 1:1 asset-backed tokenized equities product, according to Jesse Pollak, the network's creator. Pollak indicated the launch is 'imminent,' with the team 'dotting i’s and crossing t’s.'
This move signifies a strategic shift for Base, moving away from its initial focus on social products towards financial applications, including trading, payments, AI agents, and tokenized assets. Pollak admitted that Base had prioritized creator and messaging apps, which he considered a 'wrong bet,' and is now accelerating its financial offerings.
The planned tokenized equities will be fully backed by underlying shares, distinguishing them from derivative-based products. This approach aims to offer true equity ownership, including dividend payments and shareholder rights, which Pollak believes will foster greater trust, capital efficiency, and institutional acceptance. This contrasts with Robinhood Chain's recently launched tokenized equities, which provide synthetic exposure.
Coinbase had previously announced plans in June to offer tokenized US stocks to eligible non-US customers, backed one-for-one by the underlying assets. While details on share issuance, custody, and on-chain representation remain to be fully disclosed, the initiative positions Base and Coinbase in direct competition with other players in the growing tokenized equities market.
The tokenized equities market is currently valued at approximately $1.85 billion, according to RWA.xyz. The integration of traditional stocks with blockchain infrastructure promises benefits such as faster settlement, fractional access, and enhanced composability with decentralized applications.