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Coinbase (NASDAQ:COIN) is working to gain approval from the U.S. Securities and Exchange Commission to offer "tokenized equities" to its customers, the company’s chief legal officer Paul Grewal told Reuters on Tuesday.
This initiative would enable Coinbase to provide stock trading using blockchain technology. The move can put the crypto exchange in direct competition with retail brokerages including Robinhood (NASDAQ:HOOD) and Charles Schwab (NYSE:SCHW).
Grewal described the concept as a "huge priority" for Coinbase, and it is anticipated that the approval can create a new business segment for the company.
Tokenizing equities involves converting company shares into digital tokens that function similarly to cryptocurrencies. Under this system, investors would hold tokens representing ownership of securities rather than holding the securities directly.
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This article has been published in investing.com via Yahoo News.
