Base creator Jesse Pollak said the Ethereum layer-2 network is working with Coinbase on tokenized stocks backed one-for-one by underlying shares, as the US exchange prepares to expand equity trading beyond traditional brokerage infrastructure.
Pollak disclosed the collaboration while responding to developments around Robinhood Chain, describing the company’s effort to bring equities into an Ethereum-compatible environment as directionally correct. He acknowledged that Base was behind some competitors in tokenized stocks but said it was working with Coinbase on products supported 1:1 by actual shares rather than structured primarily as derivatives.
Coinbase had already announced in June that it planned to introduce tokenized stocks for eligible customers outside the United States beginning in July. The company said each token would be backed by the corresponding underlying asset and would represent genuine equity ownership, including dividend distributions and full shareholder rights.
Neither Coinbase nor Base has disclosed the initial stocks, custody structure, supported jurisdictions or precise launch date. The products will also require regulatory clearance wherever they are distributed, particularly if Coinbase eventually seeks to offer them to US investors.
Asset Backing Could Address Ownership Concerns
Tokenized stocks vary substantially in legal structure. Some products are direct digital representations of securities, while others are debt claims, derivatives or synthetic instruments that merely track a stock’s price. Those differences determine whether investors receive dividends, voting rights, redemption rights and legal ownership of the underlying shares.
Coinbase’s proposed model is intended to maintain one underlying share for each token issued. In principle, that structure limits uncollateralized issuance and gives holders a claim connected to the actual security rather than only its market performance.
The tokens could also be transferred onchain, traded outside conventional exchange hours and integrated with wallets or decentralized-finance applications. Base’s low-cost Ethereum environment would provide the infrastructure for settlement and programmable use, while Coinbase could manage brokerage, custody, compliance and customer distribution.
However, one-to-one backing does not eliminate counterparty risk. Investors would still depend on the custodian holding the shares, the legal entity issuing the tokens and the mechanism connecting blockchain ownership with traditional shareholder records.
Competition Intensifies Across Tokenized Equities
Coinbase is entering an increasingly competitive market. Kraken offers xStocks to eligible non-US customers through products backed by shares held in a separate structure, while Robinhood has introduced tokenized US equities in Europe and is developing its own blockchain for financial assets.
Traditional market institutions are also moving toward tokenization. The Depository Trust & Clearing Corporation is working with nearly 40 financial firms on tokenized representations of stocks, exchange-traded funds and US Treasurys, with a broader service expected to launch in October 2026.
Access in the United States remains more complicated. Coinbase previously sought guidance or exemptive relief from the Securities and Exchange Commission because tokenized stocks remain securities and must comply with rules governing brokerage, trading, custody, clearing and investor protection.
For Base, the project supports its repositioning as infrastructure for global onchain finance rather than primarily a venue for social applications and speculative tokens. For Coinbase, it advances the company’s broader “everything exchange” strategy by combining crypto, equities, derivatives and other financial products.
The commercial opportunity is significant, but adoption will depend on liquidity, reliable redemption and whether token holders receive rights equivalent to conventional shareholders. The 1:1 model addresses one major concern, although the final legal and operational structure will determine whether the products function as transferable shares or another layer of intermediated exposure.
