Base, an Ethereum layer-2 network developed by Coinbase, is working with its parent company to introduce tokenized stocks backed one-to-one by actual shares. Jesse Pollak, founder of Base, outlined the plans in a recent post, revealing ongoing product development in collaboration with Coinbase.
Coinbase and Base pursue fully backed tokenized equities
Pollak stressed that the upcoming product aims to represent direct equity ownership, distinguishing it from synthetic stock tokens that merely follow share prices. “Robinhood made the right call bringing tokenized equities to EVM. We fell behind, but we’re very close to fixing it with Coinbase,” he stated. However, neither Pollak nor Coinbase disclosed a launch date or technical specifics.
Coinbase, a leading US-based cryptocurrency exchange, had previously announced its intention to launch tokenized equities for international clients. The company specified that these digital assets will be fully backed by underlying shares, with associated shareholder rights and dividends. Coinbase also confirmed that US residents will not have access to the product at launch. However, there has been no official explanation about the mechanics of issuing, storing, or transferring these tokenized stocks.
Pollak acknowledged Robinhood for moving quickly to bring tokenized equities to Ethereum infrastructure but indicated that Base’s upcoming product is designed for direct ownership: “We’re very close to fixing it with Coinbase.”
Details on custody, regulatory frameworks, and supported stock markets remain unannounced. Pollak explained that a 1:1-backed issuance could improve institutional trust and capital efficiency, but operational aspects are yet to be revealed.
Robinhood Chain sets early pace in tokenized stocks
Robinhood, a prominent retail trading platform for stocks and cryptocurrencies, deployed Robinhood Chain in early July as an Ethereum-compatible blockchain. Their tokenized stock solution, called Classic Stock Tokens, operates as regulated derivatives under Europe’s MiFID II standards. Users gain exposure to price movements, but do not receive actual share ownership or rights such as voting.
According to Robinhood, the assets behind these contracts are safeguarded via a US-licensed institution, and users access them solely as derivatives. In contrast, Base and Coinbase are targeting direct tokenization of shares, aiming to give investors onchain ownership rather than synthetic exposure.
Mini dictionary: MiFID II (Markets in Financial Instruments Directive II) is a European Union regulatory framework designed to increase transparency and investor protection in financial markets, impacting trading and reporting standards for investment services.
| Platform | Token Type | Ownership | Shareholder Rights | Regulatory Framework |
|---|---|---|---|---|
| Base/Coinbase | 1:1-backed tokenized stocks | Direct | Yes | Undisclosed |
| Robinhood Chain | Classic Stock Tokens (derivatives) | No | No | MiFID II (EU) |
Tokenized equities market heats up
With interest in real-world asset tokenization accelerating across the industry, competition for onchain equity products is intensifying. Data from recent industry research values the total tokenized stock market at approximately $1.85 billion. The broader market for tokenized real-world assets, excluding stablecoins, has reached between $31 billion and $34 billion.
Alongside Coinbase and Robinhood, platforms like Backpack and XStocks, supported by crypto exchange Kraken, are also rolling out tokenized equity offerings. This growing activity underlines the sector’s race to attract both retail and institutional investors to blockchain-based share ownership.
Despite Pollak’s signals about imminent progress, major questions remain about the details of Base’s product, including its launch timeline, supported stock exchanges, integration with traditional markets, and availability to US users. Coinbase recently secured approval in the United Kingdom to offer investment services beyond crypto, potentially laying the groundwork for new regulated products in equities and derivatives.
