Coinbase is set to enter the tokenized stock market with shares that are directly backed by U.S. equities, allowing investors to own, trade, hold, and redeem stocks on a blockchain while automatically receiving dividends. The exchange’s CEO, Brian Armstrong, noted that these new products offer genuine equity ownership, contrasting with many existing offerings that provide only derivative or synthetic exposure. The tokenized stocks, which are part of a larger movement to transition traditional securities onto blockchain, will launch in select jurisdictions outside the U.S. at a yet-to-be-determined date. In a post on X, Coinbase announced that ‘the first real, 1:1 backed tokenized stocks are coming,’ highlighting the ability for users to manage securities onchain and benefit from dividend payments. This announcement precedes a product event scheduled for Tuesday at 3 p.m. ET, where Coinbase is expected to showcase various trading and financial services offerings. Armstrong emphasized that these tokenized stocks represent authentic ownership, unlike other current solutions that resemble derivatives or IOUs. With the digital asset industry rapidly adopting tokenization, the technology is believed to enhance efficiency by reducing settlement times and costs, while enabling assets to trade continuously. For international investors, tokenized stocks could simplify access to the U.S. capital markets, eliminating the need for foreign brokers and local restrictions. The competition in this space has intensified, with firms like Kraken, Robinhood, and others also exploring tokenized equities. Traditional financial markets are also embracing tokenization, with projections suggesting that it could develop into a multitrillion-dollar market by the end of the decade. Coinbase confirmed that its tokenized stocks will initially be available only in eligible jurisdictions outside the U.S., with a launch date still to be announced.