The SEC approved a temporary, five-year framework on Sept. 17 that could let Coinbase offer tokenized U.S. stocks domestically. Tokens must provide the same rights and privileges as underlying shares; whether demand can produce meaningful revenue is unproven.
Coinbase announced plans in June and launched the product on its Base blockchain in August for eligible customers outside the U.S. The first tokens included Apple, Nvidia and Alphabet shares. Coinbase issues them backed 1:1 by the underlying assets; they are designed to provide dividend payouts and shareholder rights, trade around the clock and work across DeFi platforms.
Baird reiterated a Neutral rating and a $130 price target, saying the change could bring Coinbase’s asset mix closer to Robinhood’s. In Q2, 88% of Coinbase’s net revenue came from non-Bitcoin spot trading.
