Coinbase Launches Tokenized Stocks on Ethereum L2 Base

Coinbase announced that it is now offering tokenized representations of traditional equities on Base, the Ethereum layer‑2 solution developed by the exchange. Each token corresponds to a share that is held by Alpaca, a regulated custodian, ensuring that the digital asset is fully backed by the underlying stock.

How the tokens work

The tokens are minted on Base and can be freely transferred, traded, or incorporated into decentralized finance (DeFi) protocols on the network. Because the shares are held by Alpaca, the tokens maintain a one‑to‑one relationship with the actual securities.

Potential uses

Beyond simple buying and selling, the tokenized stocks can be used as collateral, liquidity provision, or other DeFi strategies on Base, expanding the utility of traditional equities within the crypto ecosystem.

Implications for the market

This move integrates regulated equity exposure with the speed and low fees of an Ethereum L2, potentially attracting both crypto traders and traditional investors seeking on‑chain access to stock markets.