Coinbase (COIN), the second-largest bitcoin and cryptocurrency exchange by trading volume, is awaiting permission from the U.S. Securities and Exchange Commission to offer tokenized stocks to its customers.

If approved, Coinbase will be able to offer tokenized traditional stocks, such as those of Apple, Tesla, or Microsoft, using cryptocurrency network technology. This will provide a more accessible, transparent, and efficient form of ownership for investors, who will now hold digital tokens representing their stakes instead of conventional stocks. In this way, it follows in the footsteps of platforms such as Robinhood and Charles Schwab (SCHW.N).

Coinbase General Counsel Paul Grewal told Reuters that the initiative is a “high priority,” explaining that offering tokenized stocks would require the U.S. Securities and Exchange Commission to issue “a no-action letter.”

"An issuer of tokenized stock or a platform that wants to offer secondary trading in those stocks can have some confidence, some reassurance, that the SEC has adopted their perspective on why this product is compliant. It's that confidence that has been lacking so far and I think has really held back institutional adoption to a large extent," Grewal added.

It's worth remembering that on May 19 COIN stock was included in the S&P 500, marking a new financial milestone. Now, with the possibility of tokenizing these shares, Coinbase seeks to take another step toward integrating traditional markets with decentralized infrastructure.