Coinbase Launches 24/7 Trading for Digital Representations of Apple and Nvidia Stocks on Base Network

Coinbase has introduced Apple, Nvidia, Meta, and Alphabet stocks to eligible investors outside the U.S. as digital tokens backed 1:1 by real shares on the Base network.

Coinbase launched a service on Monday that provides access to shares of major U.S. companies through crypto wallets. A tokenized stock refers to the digital representation of a real stock on the blockchain. The first group includes Apple, Nvidia, Meta, and Alphabet shares. The service is currently not available to investors residing in the U.S.

According to information in Base’s blog post, each token corresponds 1:1 to a real share held by Alpaca, a regulated broker and custodian. Coinbase creates the tokens using its own B20 issuance framework. The structure operates under ADGM regulation in Abu Dhabi, and the assets are kept separate from the company’s other assets in the event of bankruptcy.

Coinbase opens tokenized stocks for 24/7 trading

Eligible investors will be able to store tokens in their own wallets and buy or sell them around the clock on supported blockchain platforms. A whitelist of pre-approved addresses is not mandatory for token transfers. The decentralized exchange Aerodrome is among the platforms supporting these transactions. Dividend payments and stock splits will also be reflected in the tokens.

The fact that tokens operate on the blockchain makes them more than just a trading tool. Investors can borrow by using these assets as collateral in DeFi applications or access other on-chain financial products. Coinbase utilizes Chainlink infrastructure for the continuous provision of price information. This data will help decentralized exchanges and lending protocols on Base accurately price tokenized stocks. Coinbase stated that it will add more stocks following the initial group.