Myron Bright
06-19

Paul Grewal, Chief Legal Officer at $Coinbase Global, Inc.(COIN)$ revealed that the company is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a tokenized stock service.

Tokenized stocks are digital assets backed by shares of publicly traded companies. Instead of holding traditional securities, investors would own tokens that represent equity ownership. This move signals Coinbase’s intent to further integrate cryptocurrency with traditional equity markets by offering blockchain-based stock trading services.

To move forward, Coinbase must obtain a no-action letter or an exemption from the SEC—effectively confirming that the product complies with regulations and that enforcement action will not be pursued.

Grewal stated that securing such a letter would provide greater confidence to tokenized stock issuers and secondary trading platforms, potentially accelerating the adoption of cryptocurrency and blockchain technology among institutional investors. However, the lack of clear regulatory guidance continues to limit growth in this area.

If Coinbase succeeds in gaining approval, it could offer stock trading on its blockchain platform, putting it in direct competition with traditional online brokers like Robinhood and Charles Schwab. While Grewal did not disclose whether Coinbase has formally filed with the SEC or when the service might launch, the move highlights the growing ambition of crypto firms to bridge the gap with traditional financial markets.

Coinbase $2.3B Convertible Note: Smart Move or Red Flag?
Coinbase Global was down 6.3%. The crypto exchange unveiled a convertible note offering worth up to $2.3 billion on Tuesday. Coinbase said it plans to offer $1 billion in convertible senior notes due in 2029, and $1 billion due in 2032 in a private offering. The company also expects to grant options to purchase up to an additional $150 million of each set of notes. -------- How do you view a company issuing new shares at high levels? Is it a case of cashing out on retail investors, or simply a good time to raise funds? At what price would it be a good opportunity to buy the dip?
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