Coinbase Launches Six New Tokenized Stocks after $228M Expansion

Coinbase has introduced six new tokenized stocks, featuring Amazon, Microsoft, and Tesla, to Base, following an impressive $227.7 million in trade volume on its initial offerings within roughly a month.

As of Sept. 4, Base announced the availability of Amazon (AMZNc), Microsoft (MSFTc), Strategy (MSTRc), SanDisk (SNDKc), SpaceX (SPCXc), and Tesla (TSLAc) on-chain, broadening Coinbase’s range of tokenized equities shortly after the initial launch.

The introduction allows qualified investors to gain exposure to five publicly traded companies and the privately-owned SpaceX via tokens that can be transferred across supported platforms on the Ethereum layer-2 network. This setup enables developers to incorporate these assets into trading, lending, and other financial offerings designed for Base.

Expansion of Coinbase’s Tokenized Stocks Beyond Initial Offerings

Coinbase began its rollout on Base on August 24, presenting tokens linked to Apple, Alphabet, Meta, and Nvidia. As previously reported by crypto.news, these products utilize Base’s B20 standard and signify beneficial interests in shares held through regulated custody.

With the addition of six new tickers, the total number of available assets reaches 10. This includes Amazon, Microsoft, SanDisk, and Tesla, which offer exposure to significant U.S. tech companies, while MSTRc pertains to Strategy, a company publicly listed on Nasdaq that is recognized for its Bitcoin holdings.

SPCXc represents an investment linked to SpaceX, which is a private entity rather than a publicly traded stock in the U.S. Coinbase had featured SpaceX exposure in a previous international tokenized share launch, alongside Nvidia, Alphabet, and Strategy.

According to Coinbase’s structure, Coinbase Onchain SPV Ltd. issues a corresponding B20 token for each underlying share or eligible equity interest. The issuer is based in the Abu Dhabi Global Market, and assets are held separately from Coinbase under a custody agreement.

Coinbase clarifies that each token serves as a beneficial claim on the respective equity, rather than being a synthetic instrument that merely reflects its price. However, token holders are not directly recorded in the shareholder register of the underlying companies.

Alpaca Securities functions as the broker and custodian for these public equities. The firm is registered with the U.S. Securities and Exchange Commission and is affiliated with the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

The shares are kept in segregated custody to minimize bankruptcy risks. The prospectuses outline the specific legal conditions, associated fees, and risks related to each token.

DEX Trading Volume Approaches $228 Million in One Month

Data from Token Terminal shows that trading volume for Coinbase-issued stock tokens reached $227.7 million across decentralized exchanges on Base during the 30 days leading to this latest expansion.

This analytics platform captures trades conducted through decentralized exchanges rather than simple transfers between blockchain addresses. Daily DEX transactions peaked over $33 million, as per the same data sets.

An earlier update from Token Terminal noted cumulative trading volume at $124.8 million, with NVDAc contributing $71.6 million, accounting for 57% of the activity observed at that time. This indicates that trading volume continued to grow following the initial surge after the August launch.

Separate data from RWA.xyz highlighted significant growth in the tokenized stock space even prior to Coinbase’s new product additions. Late August saw monthly transfers jump 415% to $29.5 billion, with tokenized equities valued at nearly $2.54 billion on-chain.

It’s important to note that transfer and trading volumes reflect different activities. Transfers may consist of collateral movements, automated transactions, or shifts between applications, while DEX volume solely records token swaps through decentralized exchanges.

RWA.xyz reported approximately 1.3 million monthly active addresses and 2.36 million tokenized stockholders at that time. Total wallet counts might not equate to unique holders, given that individual users can manage multiple addresses and custodial services may combine assets from various clients.

Token Holders Can Trade and Utilize Assets in DeFi

Qualified users have the opportunity to store Coinbase’s stock tokens in self-custodial wallets and trade them beyond typical Nasdaq or NYSE hours. On-chain markets remain accessible overnight, on weekends, and on U.S. market holidays.

Coinbase facilitates the connection of B20 assets with selected decentralized finance applications. Aerodrome provides decentralized trading liquidity, while Aave, Morpho, and Euler support or intend to offer lending and borrowing capabilities.

Additional integrations noted during the initial launch featured platforms like 0x, 1inch, KyberSwap, and CoW Swap. Chainlink supplies pricing data aimed at assisting applications in tracking the value changes of each token.

This framework enables a verified holder to purchase a token through a decentralized exchange and subsequently use it as collateral in an appropriate lending market. Access, borrowing limits, and liquidation conditions vary based on each protocol’s rules.

Price variances from the underlying shares may occur when U.S. markets are closed, especially if on-chain liquidity is low. Coinbase’s prospectus warns that market disruptions, limited liquidity, and differing trading hours can lead to the tokens trading above or below their underlying equities.

Corporate actions follow a distinct process compared to a standard brokerage account. Coinbase states that dividends are typically reinvested into additional underlying shares post applicable taxes and fees, while an on-chain multiplier adjusts the equity value tied to each token.

The total token count within a wallet remains constant even when the multiplier is updated. Coinbase utilizes this method to account for stock splits, ensuring positions in DeFi applications remain unaffected.

U.S. Investors Excluded from the Base Offering

Despite many underlying companies being based or listed within the United States, Coinbase has made the B20 securities unavailable to U.S. persons. These products have not been registered under the Securities Act of 1933 or state securities laws.

Coinbase offers them under Regulation S, an SEC exemption for qualifying securities transactions that take place outside of the U.S. This restriction applies to sales executed within the country and transactions conducted on behalf of or for U.S. persons.

American customers can still access traditional stocks and exchange-traded funds through Coinbase Capital Markets, but this regulated brokerage service differs from the B20 assets available on Base. Apex Clearing manages execution, clearance, and custody for the conventional brokerage offerings.

Users acquiring a B20 token via an open decentralized market must still meet the issuer’s identity, sanctions, and jurisdiction criteria to become verified holders. Unverified holders are not permitted to redeem tokens for the underlying shares, U.S. dollars, or recognized stablecoins, as outlined in the product terms.

Verified redemptions come with a 0.05% fee and may be delayed due to compliance checks, settlement processes, or sales of the underlying security. The final amount may differ from the value shown at the time of the redemption request.

Coinbase’s tokens have also begun to feature in third-party investment products. In August, Bitwise launched three automated portfolios for eligible non-U.S. users, covering the Magnificent Seven along with SpaceX, robotics firms, and artificial intelligence companies.

Bitwise’s models deploy Glider for executing trades and rebalancing assets held in a user’s wallet. They charge a 0.15% methodology fee, excluding Glider’s platform fees and any trading expenses incurred during portfolio rebalancing.