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Crypto traders are being further exposed to traditional markets as tokenized equities, stock perps, prediction markets, and AI trading tools turn crypto exchanges into multi-asset platforms, according to GSR Markets.
In its June 22 weekly update, GSR stated that Coinbase’s plan to launch tokenized US stocks for non-US customers next month is one of the exchange’s largest shifts into traditional brokerage markets.
Coinbase says the products will be backed 1:1 by their underlying assets and will represent true equity ownership, such as dividend payouts and shareholder rights. The exchange also says users will be able to trade the assets 24/7, lend shares for yield, use them as collateral for loans, or transfer them like other on-chain assets.
In total, Coinbase’s “Everything Exchange” will offer:
These moves posit Coinbase as far more than a place to buy and sell crypto. Rather, the exchange presents a one-stop shop for users to hold Bitcoin, stablecoins, tokenized Nvidia exposure, pre-IPO derivatives, prediction-market contracts, and AI-managed strategies.
The goal is to change user behavior. A trader who holds USDC, Bitcoin, and Solana on Coinbase may not need to move funds to a separate brokerage account to buy exposure to Tesla, Nvidia, or Apple. It allows Coinbase to profit from fees while providing traders with a simplified experience.
However, there’s a bit of risk in that this model also brings crypto-level complexity into simple, conventional stock trading. Users might see a tokenized stock ticker and assume it’s identical to holding shares through a brokerage, even when custody, voting, redemption, liquidity, and legal claims may differ.
GSR noted that tokenized stocks already come in several forms. xStocks, issued by Backed and listed through Kraken, is designed for decentralized finance (DeFi) transferability and is backed by underlying shares, but its tokens are closer to tracker certificates than direct equity.
Coinbase is aiming higher, with tokenized stocks representing true ownership, dividend payouts, and shareholder rights, according to the exchange.
That said, GSR also notes that Coinbase has not yet published full documentation showing how tokens will be held, transferred, voted, or otherwise integrated into DeFi. Until those details are public, traders may struggle to compare Coinbase’s model with other tokenized products.
GSR’s other point is that crypto exchanges are moving into territory once managed by brokerages, while traditional assets are becoming more programmable and available outside normal trading hours.
Regulation may also be moving in that direction, with the SEC’s June 11 proposal to rescind Regulation NMS Rules 611 and 610(e), which cover trade-through protections and locked or crossed markets in US equities. These rules were built for traditional stock exchanges, where orders move through centralized venues. Tokenized stocks and on-chain markets may require different systems if assets can trade around the clock and settle through blockchain infrastructure.
Even so, Coinbase still needs to prove that its tokenized stocks can work at scale and that users understand the rights attached to them. If it succeeds, crypto platforms may not simply compete with brokerages. They could become the place where a new generation of traders buys stocks, crypto, derivatives, and other assets from the same account.
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