Eligible non-US users can now trade tokenized equities, including tech giants like Apple (AAPL) and Nvidia (NVDA), on Coinbase’s Layer-2 network, Base. This initiative is powered by Backed, a platform that issues B20 tokens backed 1:1 by the underlying securities. By bringing these assets on-chain, investors gain the ability to trade traditional stocks around the clock, bypassing the restrictive hours of traditional stock exchanges like the NASDAQ or NYSE.
The infrastructure for these tokenized stocks relies on Chainlink’s price feeds to ensure accurate, real-time valuation of the assets on the Base network. This integration is a significant step for decentralized finance, as it allows tokenized equities to be used as collateral for loans or as liquidity in various DeFi applications. By bridging the gap between traditional finance (TradFi) and Web3, Coinbase and Backed are expanding the utility of blockchain beyond native cryptocurrencies.
From a regulatory standpoint, these products are strictly unavailable to US residents. Despite Coinbase being a US-headquartered firm, the current regulatory climate and the SEC’s stance on digital securities mean that American investors remain sidelined from this specific innovation. This geographic restriction highlights the ongoing tension between US-based crypto firms and domestic regulators, often resulting in new financial products being launched exclusively for international markets.
Market observers should watch for the expansion of the B20 product line to include additional blue-chip stocks and ETFs on the Base network. As Real World Asset (RWA) tokenization gains momentum, the success of this rollout could serve as a blueprint for how traditional securities are eventually integrated into global blockchain ecosystems. For US investors, the primary signal to watch will be whether these developments eventually prompt a shift in domestic policy regarding the trading of tokenized securities.