Coinbase launching tokenized US stocks, backed 1:1, with holders able to receive dividends

Coinbase says users will be able to buy, trade and hold tokenized versions of U.S. stocks that are backed 1:1, the exchange announced on Tuesday in a brief social media post.

"The first real, 1:1 backed tokenized stocks are coming," Coinbase said. "Own actual tokenized shares of U.S. companies. Trade, hold, and redeem, all onchain. Automatically receive dividends. No derivatives, no IOUs."

The company said more details would come later Tuesday afternoon.

Coinbase's move comes as American regulators and lawmakers are discussing how tokenized stock trading can or will function. Rival firms like Robinhood and Kraken also aim to offer users onchain versions of U.S. equities.

Robinhood launched an Arbitrum-based initiative to offer hundreds of tokenized U.S. stocks and exchange-traded funds. Global players like Binance, OKX, and popular DEXes like Hyperliquid and Lighter, are all also exploring ways to offer users onchain investments tied to the performance of U.S. equities.

In some cases these exchanges, and others, already offer non-U.S. investors access to stock-linked derivatives tied to companies such as Tesla, Apple and Nvidia, but without any promise the exchange is holding the actual shares in reserve to back the onchain versions of the stocks.

One of the more alluring aspects of tokenized trading is the potential for 24/7 market access, allowing investors to trade outside traditional stock market hours.

Earlier this month, Backpack, the crypto exchange founded by former FTX employees, launched Backpack Securities, a platform designed to blend traditional and tokenized stock trading.