Coinbase Global Inc. (COIN.US) Chief Executive Brian Armstrong confirmed Monday that the company's tokenized US equity products have gained initial market traction. While Armstrong acknowledged the business is "still in early stages, but progress so far is quite solid," his remarks signal that the pivotal moment for traditional financial assets migrating on-chain has arrived.
The asset appreciation effect on the Base blockchain has been remarkable, with the value of holdings for Coinbase (COIN.US) stock owners surging 9,697% within a single month. Data compiled shows that on-chain analytics firm Token Terminal reports total holder numbers have reached 46,700 individuals. Among these, tokenized stocks issued by NVIDIA (NVDA.US), Apple (AAPL.US), and Tesla Motors (TSLA.US) have attracted the largest number of holders, with mega-cap tech names emerging as the core driver of on-chain demand.
This product mechanism was opened last month to eligible users outside the United States, with each digital token backed on a 1:1 basis by regulated custodians holding the underlying traditional stocks, while retaining dividend distribution rights and voting rights. Unlike traditional equities, these assets can serve as collateral for on-chain loans on platforms such as Aave (AAVE). Armstrong noted that the tokenization initiative will also expand to include private corporate bonds, treasuries, and investment funds.
Currently, the total value of the tokenized stock market stands at $3.4 billion, holding more than 4 million holders, with monthly trading volume reaching $70 billion. Last week, the US Securities and Exchange Commission introduced a five-year temporary regulatory framework that allows for the exemption of certain exchange and dealer registration requirements when trading specific tokenized US stocks on blockchain-based platforms.
The market responded swiftly, with Coinbase (COIN.US) shares closing up 3.5% at $201.05 during Monday's regular trading session, followed by a further 0.47% gain in after-hours trading. The stock has been included on the list of equities with the strongest upside potential.
This marks another landmark event following the DeFi lending boom, demonstrating traditional equity assets entering the Web3 ecosystem at scale through compliant pathways, and signaling that on-chain financial infrastructure is accelerating its deep integration with traditional capital markets.
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