Key facts
- Coinbase tokenized stocks are now live on the Base layer-2 network.
- The offering includes fractional shares of Apple and Nvidia.
- Users outside the United States can hold these tokens in self-custody wallets.
- The tokens are built on the B20 standard, which manages dividends and stock splits.
- Alpaca acts as the regulated broker and custodian for the underlying shares.
Coinbase has officially launched its tokenized stocks feature on the Base layer-2 network, enabling eligible users outside the United States to access fractional shares of major companies like Apple and Nvidia. These tokens can be held in self-custody wallets, traded on decentralized exchanges like Aerodrome, or used as collateral on lending platforms such as Aave.
The tokenized stocks are built on a standard called B20, which is designed to manage corporate actions like dividends and stock splits without altering the token balances, thereby ensuring compatibility with DeFi protocols. Alpaca, a regulated broker and custodian, holds the actual shares corresponding to each token.
This move by Coinbase follows similar initiatives from other companies. Robinhood recently launched its own layer-2 chain offering tokenized stocks, though not available in the U.S. Coinbase itself previously introduced perpetual futures on its Base App via Hyperliquid, also excluding U.S., UK, and Canadian users.
Despite the lack of clear U.S. regulation, with the SEC's tokenized-stock exemption still pending and new proposals focusing on token fundraising, Coinbase is proceeding with its product rollout. The company plans to introduce more tokenized stocks and other real-world assets on Base in the coming weeks, signaling a push towards integrating traditional financial assets into the decentralized ecosystem.