Armstrong says Coinbase tokenized stocks are gaining traction

Coinbase Global CEO Brian Armstrong said its tokenized U.S. stocks were gaining traction, although he described the initiative as being in its very early days. Holders of Coinbase-issued stocks on the Base blockchain rose 9,697% in a month. On-chain analytics firm Token Terminal reported 46,700 holders, with tokenized versions of Nvidia, Apple and Tesla leading its chart. Coinbase launched the tokenized stocks last month for eligible users outside the U.S. Each token represents a 1:1-backed direct claim on an underlying traditional stock held by a regulated custodian. The tokens also carry dividend and voting rights. Unlike traditional stocks, Coinbase-issued stocks can be used as collateral for on-chain loans on platforms including Aave. Armstrong said Coinbase's tokenization plans could extend to private companies, Treasuries and investment funds. Token Terminal reported that the broader tokenized stock market had a total value of $3.4 billion, more than 4 million asset holders and $70 billion in monthly volume. Last week, the SEC created a five-year temporary regulatory pathway for trading certain tokenized U.S. stocks on blockchain-based venues, with conditional exemptions from exchange and dealer-registration rules. Coinbase shares rose 0.47% in after-hours trading, according to Benzinga Pro, after closing 3.5% higher at $201.05 in Monday's regular session. Benzinga's Edge Stock Rankings said COIN had a stronger short- and medium-term price trend but lagged over the long term.