Coinbase is looking for approved from the US Securities and Exchange Commission (SEC) to launch tokenized stock trading, a step that can expand its business to the territory of traditional broker companies.
The chief legal official of the crypto exchange, Paul Grewal, told Reuters Coinbase aims to offer digital versions of stocks – known as tokenized equal – traders on blockchain networks rather than through conventional exchanges. The model allows the rotation of the clock, reduce transaction costs and eliminate the clearing of mediators.
However, the road ahead depends on how the Sec. Coinbase is looking to secure either an in action letter or an exemption from implementation, both of which will provide a regulation cover for offering these products in the US
PUSH marks a strategic shift for Coinbase, who already owns a broker-dealer license through a dormant affiliate. If the initiative succeeds, it can position the company next to retail brokers such as Robinhood (Hood) and Charles Schwab (SCHW), which fits into a similar investor base, as well as Crypto Exchange Kraken.
Tokenized equities have not been legal to trade in the US, but platforms such as Kraken is pilot Such offerings abroad. Coinbase’s timing is in line with a more lovely regulatory climate under the new SEC Chair Paul Atkins; The agency has dropped a lot of crypto-related suits and has set up a work force dedicated to digital properties.
However, Grewal refused to tell if Coinbase had formally filed his request. The confidence derived from the clear SEC guide is missing, he said.
“Crazy? Yes. Important? Really. But the breaking of the news? Not exactly. We say since earlier this year that the SEC should enable Na -Post on social media.
“The tokenized debt, equity, and investment funds show an opportunity for appropriate regulations for security offered and exchanged through digital native methods.”
