Coinbase Launches Tokenized Stocks on Base, Starting With Apple and Nvidia
Coinbase has begun issuing tokenized versions of Apple, Nvidia, Meta, and Alphabet shares on its Ethereum Layer 2 network Base, using a framework established in Abu Dhabi. The tokens represent shares held by regulated custodian Alpaca and can be traded or used in DeFi applications.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
Coinbase Enters Tokenized Equities Market
Coinbase has launched tokenized stocks on Base, its Ethereum Layer 2 network, offering blockchain-native versions of four major U.S.-listed companies: Apple, Nvidia, Meta, and Alphabet. The tokens represent actual shares held by regulated custodian Alpaca, according to reporting from both CoinDesk and Decrypt.
How the Structure Works
Coinbase is operating under a framework it established in Abu Dhabi to issue these tokenized securities. The underlying shares are custodied by Alpaca, a regulated entity, rather than held directly on-chain. This structure allows the tokens to be traded on decentralized exchanges and integrated into DeFi protocols running on Base while maintaining regulatory compliance through the custodian.
Strategic Positioning
The move places Coinbase alongside other platforms exploring tokenized equities as a way to expand crypto infrastructure into traditional asset classes. By launching on Base rather than mainnet Ethereum, Coinbase keeps transaction costs low and transaction finality fast—key advantages for frequent trading in stocks.
Why It Matters
For Traders
Tokenized equities on Base create a new trading venue and settlement layer for stock exposure with lower fees than traditional brokers, though regulatory clarity on custodian liability remains unsettled.
For Investors
The tokenized stocks model signals that major platforms see blockchain infrastructure as viable for regulated securities settlement, though adoption depends on custody standards and regulatory framework maturation.
For Builders
Base developers can now integrate equity tokens into DeFi protocols, opening collateral and yield farming use cases previously unavailable on Layer 2 networks.
This article is for information only and is not financial advice. Read the full disclaimer.
