Coinbase to join tokenized stock race with onchain shares, dividend payments
Coinbase (COIN) mentioned it plans to introduce tokenized shares backed one-for-one by underlying U.S. equities, becoming a member of the rising competitors amongst crypto companies and conventional monetary corporations to convey shares onto blockchain networks.
In a submit on X on Tuesday, the trade mentioned “the primary actual, 1:1 backed tokenized shares are coming,” permitting customers to personal, commerce, maintain and redeem the securities onchain whereas mechanically receiving dividends.
The announcement comes forward of a product occasion scheduled for 3 p.m. ET Tuesday, through which the corporate, finest referred to as a crypto trade, is predicted to unveil a sequence of choices spanning buying and selling and monetary companies.
“For the primary time, these are actual 1:1 backed tokenized shares you possibly can belief,” CEO Brian Armstrong mentioned in a press release. “You personal an precise piece of the corporate onchain.”
Armstrong mentioned the merchandise differ from many present tokenized inventory choices, which are sometimes structured as derivatives or artificial exposures somewhat than direct possession pursuits.
“Different present options are some type of spinoff or IOU — not actual possession,” he mentioned. “Our tokenized shares will give all the advantages of true possession (e.g. dividend upside), with all the advantages of tokenized belongings.”
