Tokenized stocks seen transforming global markets, says Coinbase CEO

Tokenized stocks will transform global markets by enabling 24-hour trading, fractional ownership, and real-time settlement, Coinbase CEO Brian Armstrong said.

Armstrong stated that tokenized stocks will increase international access, allow fractional purchasing of shares, enable perpetual futures, and introduce governance innovations, according to statements.The executive added that real-time settlement will accelerate transactions and that perpetual futures and new governance models may emerge.

The cryptocurrency community has responded with mixed views to the proposal. Andreas Kohl expressed support for tokenizing shares but opposed derivatives of CSD-held shares on Base, arguing the largest opportunity exists in on-chain direct registration systems (DRS) and disintermediated trading for native Bitcoin. Kohl suggested post-fiat markets could be free from monetary policy manipulation and eliminate naked short selling.

Coinbase CEO is bullish on tokenized stocks

Other commentators expressed optimism about widespread tokenization in coming years, while some raised governance concerns. Critics accused Washington of relying on outdated Wall Street politics to control blockchain innovation and compared the approach to 2008 bailouts that favored entrenched interests over innovation.

The German Foundation Coin warned that tokenization requires effective enforcement mechanisms. The organization stated that access and liquidity can scale quickly, but trust and enforceability will not unless legal rights, settlement finality, and accountability are designed and enforced on-chain rather than promised off-chain.

Tokenization is expanding retail access and democratizing investment by giving ordinary people access to assets previously available mainly to high-net-worth investors, according to market observers. Interest from retail traders is rising rapidly, though professionals have cautioned newcomers to exercise care because tokenized stocks can be less regulated.

James Angel of Georgetown University noted that a token is an instrument not issued by the company and can act as a side bet on corporate prospects, underscoring legal and financial risks and the need for clearer rules.

The total value of tokenized equity transfers increased to approximately $2.46 billion last month, according to available data.

Armstrong outlined a growth strategy for Coinbase, stating the company plans to develop an all-in-one exchange platform by 2026 that will enable trading of cryptocurrencies, stocks, and commodities.