Coinbase CEO Brian Armstrong has declared tokenized equities a cornerstone of the company's long-term strategy, aiming to transform the exchange into an "everything exchange" by 2026. During a recent CNBC appearance, Armstrong emphasized the transformative potential of tokenizing traditional stocks onto blockchain networks, highlighting benefits like 24/7 trading, instant settlement, and reduced costs.
The vision extends beyond crypto, positioning Coinbase to challenge major brokerage firms by expanding into broader financial services. Armstrong stated, "the real play is tokenized equities—stocks that live on blockchain networks instead of traditional exchanges." He later added on social media, "Tokenized stocks will be huge. So many opportunities," noting they would offer international access, fractional ownership, perpetual futures, and novel governance features.
To realize this ambition, Coinbase is taking concrete steps. The company is moving to produce tokenized shares internally, unlike rivals Robinhood and Kraken which rely on external partners in select jurisdictions. This push is part of a broader expansion that includes a recent partnership with prediction market Kalshi and the planned acquisition of The Clearing Company to bolster event-based trading offerings.
Market data suggests growing traction, with tokenized equity transfers surging nearly 76% in the past month to approximately $2.46 billion, according to RWA.xyz. However, experts caution about risks. James Angel, an associate professor at Georgetown University, noted tokenized stocks are "a side bet on the future prospects of the company" and are less regulated, posing legal and financial risks to retail traders.
Regulatory and industry skepticism also persists. Critics argue that current U.S. efforts feel like a "handout to powerful players" rather than genuine innovation, while the German Foundation Coin stressed that trust and enforceability must be "designed into the system" for tokenization to be truly powerful.
