As a seasoned researcher with over two decades of experience delving into the intricacies of financial markets and technology, I find myself intrigued by Coinbase’s recent announcement about exploring tokenized shares of its stock, COIN, for US users on their Ethereum layer-2 network, Base. Having followed the development of tokenized real-world assets (RWAs) over the years, it seems that we may be on the cusp of a new era in asset tokenization.
Having witnessed the rapid growth and evolution of the crypto market, I am well aware of its immense potential to disrupt traditional finance. The fact that collectively, RWAs represent a $30 trillion market opportunity globally is not lost on me. However, I also recognize the challenges that lie ahead, particularly when it comes to navigating US regulations, which can be complex and ever-changing.
I am cautiously optimistic about Coinbase’s plans for COIN on Base, but I understand that they are still in an exploratory phase and have no concrete plans at the moment. As someone who has seen countless projects falter due to regulatory issues, I hope that Coinbase can successfully navigate this landscape and bring tokenized assets to US users.
I find it fascinating that some analysts believe clearer US rules are crucial for crypto adoption, especially for tokenized securities like COIN. With the current administration’s stance on cryptocurrency, it will be interesting to see how things unfold in the coming years. I can only hope that the US can catch up to other major jurisdictions and provide a more favorable environment for innovation in this space.
In closing, as someone who has seen many twists and turns in the crypto market, I’ve learned to take each development with a grain of salt. So, let me leave you with a little humor: “If you can’t beat ’em, tokenize ’em!” Let’s see how Coinbase fares as they venture into this exciting new frontier.
As an analyst, I’m sharing that Coinbase is contemplating offering tokenized versions of their stock (COIN) to users within the United States who are part of our Ethereum layer-2 network, Base. This information was shared by Jesse Pollak, a developer at Base, on the X platform.
Tokenized COIN shares can currently be obtained by non-U.S. residents via systems like Backed, a platform specialized in tokenizing real-world assets (RWA), as mentioned by Pollak in a January 3rd post on Reddit.
COIN on Base represents a potential exploration for next year, according to Pollack. He further mentioned that ultimately all global assets might find their place on Base.
According to Pollak, at this moment, Coinbase doesn’t have any definite strategies set in stone. Instead, they are in a stage of exploration as they strive to grasp how to maneuver within the complexities of American regulations.
As a data analyst, I emphasize the importance of regulatory clarity and enhancements that acknowledge on-chain platforms as an open environment. This step will empower widespread access to its potential benefits for all.
Burgeoning market
In total, the market for tokenized forms of real-world assets, which encompasses tokenized securities, is estimated to be worth approximately $30 trillion worldwide. This was stated by Colin Butler, who serves as Polygon‘s global head of institutional capital, during a conversation with CryptoMoon in August.
In November, U.S. cryptocurrency stocks like COIN experienced significant growth following Donald Trump’s win in the presidential election, as some experts believe his presidency would be advantageous for the sector, according to CryptoMoon Research.
On Nov. 11, COIN surged more than 20%, pushing the stock past $300 for the first time since 2021.
According to Michael Miller, an analyst at Morningstar Inc., it’s expected that Coinbase will benefit from the election results since the company has faced regulatory challenges with the SEC. Coinbase has been actively contesting these issues in court.
As it’s anticipated that the upcoming Donald Trump administration may have a more positive stance towards the cryptocurrency sector, our staking business could experience reduced regulatory scrutiny,” Miller stated.
Regulatory clarity needed
Experts emphasize that more transparent U.S. regulations are essential for the widespread acceptance of cryptocurrencies, especially for security tokens like COIN.
During President Joe Biden’s tenure, over a hundred enforcement cases were initiated by the U.S. Securities and Exchange Commission (SEC) targeting cryptocurrency businesses, alleging they had breached securities regulations.
According to an investment bank, Citibank, the United States appears to be making efforts to shift from a system of regulation through enforcement to one that is more comprehensive, as legislated by Congress. This insight was expressed in a research note published in December and subsequently shared with CryptoMoon.
However, legislation in the United States is “lagging other major jurisdictions,” Citi said.
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2025-01-03 23:44