Coinbase has rolled out tokenized stocks on its Base network, letting investors trade shares around the clock. The tokens are backed one-for-one by the underlying shares, meaning each token represents a single share of a company.
How the tokens work
The tokens are designed to mirror traditional stocks but live on a blockchain. That means they can be bought and sold 24/7, unlike standard market hours. The one-for-one backing is meant to ensure each token holds its value against the real share.
Self-custody and DeFi
Users can hold these tokens directly in their own wallets, no need for a broker. The tokens are also compatible with decentralized finance, or DeFi, protocols. That allows them to be used in lending, borrowing, or other on-chain activities, potentially expanding how stocks can be utilized.
The launch on Base, Coinbase's layer-2 network, is now live. It's a step toward bridging traditional finance with the crypto ecosystem, though details on which companies are included weren't part of the announcement.
