Coinbase has enabled tokenized stock trading services on the Ethereum layer-2 network Base. This facility is specifically provided for investors outside the United States, giving them a way to trade shares of major technology issuers without being bound by traditional stock market hours.
In this initial phase, Coinbase has released four leading stocks: NVIDIA (NVDAc), Meta (METAc), Apple (AAPLc), and Alphabet (GOOGLc). The tokens, issued using the B20 contract structure, represent a valid beneficial claim to one share of the underlying stock. The physical shares are held and managed by custodian Alpaca Securities, an SEC-registered broker-dealer that is also a member of FINRA and SIPC.
These instruments are issued by Coinbase Onchain SPV Ltd., an entity incorporated in the Abu Dhabi Global Market (ADGM) and received operational approval from the FSRA as of August 4, 2026.
Ecosystem Integration and Dividend Rules
The main advantage of placing stocks on the blockchain is transaction time. Base stock tokens can be traded 24 hours a day, 7 days a week. Trading continues uninterrupted on weekends and US market holidays, eliminating conventional exchange opening and closing hours.
These tokens are also directly integrated with the decentralized finance (DeFi) ecosystem. Market liquidity is facilitated by Aerodrome. For swap processes, users can utilize 0x, 1inch, and CoW Swap. Token holders can even use these assets as collateral in various lending protocols such as Aave, Morpho, and Euler.
There are specific rules regarding profit distribution. Dividends are not paid in cash, but are automatically reinvested to increase the share position. There is a double burden for non-US investors: dividends are subject to a 30 percent US withholding tax, plus an additional 5 percent distribution fee.
Redemption Requirements and a Proving Ground
For the redemption process, investors are charged a 0.05 percent fee. Redemption payouts are flexible, allowing liquidation into the underlying shares, US dollars (USD), or the USDC stablecoin. Strict requirements await token holders who are not yet vested, particularly those who obtained tokens from unregulated DeFi markets. They must pass compliance checks before the redemption process is allowed.
Base plans to add more tickers in the coming weeks, subject to regulatory approval.
For the Base team, this launch is also a moment of proof. Coinbase was previously outpaced by its competitor, Robinhood, which had already launched tokenized stocks on the Robinhood Chain. Jesse Pollak, the founder of Base, publicly admitted that his project was lagging behind and expressed frustration over the delay. The introduction of these NVIDIA and Apple stocks is Pollak’s way of responding to market competition.
Sourced from crypto.news.
Read also: What is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
