Coinbase seeks SEC approval to launch on chain tokenized stocks, challenging traditional brokerages such as Robinhood

On June 17th, according to TheBlock, Paul Grewal, Chief Legal Officer of Coinbase, revealed that he is actively applying for a no objection letter or waiver from the SEC to launch a traditional stock trading service based on blockchain technology. Tokenized stocks will enable T+0 settlement, 24/7 trading, and lower costs, but currently US investors are still prohibited from participating. This move will directly challenge traditional securities firms such as Robinhood and Jiaxin Wealth Management, while Coinbase's competitor Kraken has launched xStocks service in Europe, Asia, and Africa, which includes more than 50 tokenized stocks and ETFs. Coinbase is continuing to expand its non crypto asset portfolio, following last week's launch of the American Express co branded credit card and Shopify/Stripe USDC payment partnership. When attempting an IPO in 2021, it attempted to issue tokenized COIN stocks but was rejected by the SEC. Coinbase was sued by the SEC in 2023 for not registering, and the lawsuit was withdrawn earlier this year, but it has not yet obtained a broker dealer license. If Coinbase's application is approved this time, it will break down the liquidity barriers between the traditional equity market and the cryptocurrency market, which may accelerate the SEC's development process of the "Classification Guidelines for Securities Tokens".