Author: Fairy, ChainCatcher
Editor: TB, ChainCatcher
Coinbase has been quite active recently.
On one side, it is applying to the US SEC to launch stock tokenization trading; on the other side, it is collaborating with Shopify to allow consumers in 34 countries to shop using USDC on the Base chain; meanwhile, it also supports all Base ecosystem assets through DEX.
Coins, stocks, payments, and contracts, all are comprehensive, and completed in a closed loop on its own chain Base. Coinbase's ambition is becoming fully apparent.
"On-Chain Brokerage": Coinbase's Super Entry Dream
According to Reuters, Coinbase is seeking SEC approval to provide users with stock tokenization trading services. Once approved, users will be able to trade tokenized assets representing US stocks through blockchain technology. Coinbase will directly compete with traditional retail brokers like Robinhood and Charles Schwab, and is expected to open up a new on-chain securities business landscape.
Behind this move is a rapidly growing market: since the beginning of this year, the overall market value of the RWA field has grown from $15.7 billion in January to $23.9 billion currently, an increase of over 50% in just a few months.
Image: rwa.xyz
Coinbase is not the only player eyeing this trend. Last month, its main competitor Kraken announced the launch of "xStocks" stock token products outside the US, initially covering over 50 stocks and ETFs including Apple, Tesla, and NVIDIA. The product is deployed on the Solana blockchain and supports 24/7 trading.
However, for Coinbase to implement this model in the US, it still needs to overcome high regulatory barriers: it must obtain a "no-objection letter" or exemption from the SEC. According to current regulations, all institutions providing securities trading services must hold a broker's license. Fortunately, Coinbase acquired Keystone Capital with this license back in 2018, and although the subsidiary has not been actually activated, theoretically Coinbase is qualified to provide similar services.
Additionally, Coinbase's Chief Legal Officer Paul Grewal has clearly stated that stock tokenization business is the company's current "highly prioritized" strategic direction. If this model succeeds, Coinbase could break the traditional broker landscape and launch a direct challenge to Wall Street on the chain.
Coinbase's Strategic Pivot: Base
Coinbase is vigorously promoting the Base chain, attempting to build it into the underlying infrastructure and strategic hub for an on-chain financial closed loop.
Recently, Base's head Jesse stated that Coinbase will list all Base ecosystem assets through DEX mechanism, allowing users to seamlessly trade with funds from their CEX accounts. This means that projects issued on Base can immediately reach Coinbase's platform-wide users. This brings enormous benefits to Base in terms of both liquidity and market attention.
In real-world payment scenarios, Coinbase is also promoting Base's expansion. On June 13, e-commerce platform Shopify announced a collaboration with Coinbase and Stripe, allowing merchants to accept USDC as a payment method. Consumers can now check out and shop using USDC on the Base chain in 34 countries.
Traditional financial giants have also incorporated Base into their on-chain experiments. Today, JPMorgan announced a pilot issuance of JPMD tokens on Base, representing US dollar deposits. JPMD is scalable and may support interest and deposit insurance in the future, seen as a compliant alternative to stablecoins. This indicates that large institutions are actively exploring compliant issuance, circulation, and settlement paths for on-chain assets, with Base potentially becoming an important foothold for banks, brokers, and payment platforms to "go on-chain".
From a strategic perspective, Base is the key bridge for Coinbase towards on-chain primary markets, on-chain brokerages, on-chain payments, and even "on-chain banking". Base carries ecosystem activity, while Coinbase recovers entry and assets through CEX.
From stock tokenization to on-chain payments and stablecoins, to large institutional asset issuance experiments, Coinbase is attempting to build a "on-chain financial empire" that can operate compliantly using three major tools: coins, stocks, and chains. However, the ever-changing regulatory policies, fierce competition, and the deep integration of technology and compliance are unavoidable tests for this "empire's" expansion.
