Coinbase and Coinbase Asset Management announced plans on Tuesday, June 16, 2026, to launch the first tokenized U.S. stocks backed 1:1 by actual shares. The exchange confirmed that the new product will feature automatic on-chain dividend distribution, allowing users to own, trade, hold, and redeem shares directly on the blockchain.
CEO Brian Armstrong emphasized that the initiative offers “true ownership” through a “no derivatives, no IOUs” structure, distinguishing it from synthetic equity products that currently dominate the market.
The service will be part of Project Diamond, a smart-contract-powered platform designed for institutions to manage digitally native assets. However, the tokenized stocks will only be available in eligible jurisdictions outside the United States. For Project Diamond, initial use cases are strictly confined to registered institutional users outside the U.S.
This international focus follows a broader trend where regulatory uncertainty in the U.S. has led firms to launch innovative financial products in foreign markets first.
Project Diamond has already secured in-principle approval from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). The platform leverages the full Coinbase technology stack, including Coinbase Prime for custody and the Base Ethereum Layer 2 blockchain. The exchange also confirmed it is using the Chainlink Cross-Chain Interoperability Protocol (CCIP) standard to ensure security and compliance for institutional adoption.
Closing the delivery gap in tokenized equities
Coinbase is positioning its 1:1 backed model as a direct solution to transparency issues that have impacted competitors. Unlike many existing tokenized assets that only offer price exposure, the Coinbase product represents a direct claim on underlying shares.
This move follows a high-profile failure earlier this month where exchanges including Binance and Bybit had to cancel tokenized SpaceX allocations after the platform xStocks failed to deliver the physical shares.
Currently, the tokenized equity market is led by xStocks, which holds roughly $516 million in total value locked, primarily on the Solana blockchain. While other major exchanges have offered similar products abroad, Coinbase claims its version is unique due to the automatic dividend pass-through and direct redemption capabilities. This transition toward more com/bitcoin-signals-market-structure-analysis-2026/”>mature market structures reflects a push to bridge the gap between traditional finance and blockchain infrastructure.
The “no IOUs” framing is central to Coinbase’s strategy to attract institutional capital. CEO Brian Armstrong noted on X that other current market solutions are often just derivatives. By contrast, Coinbase’s platform allows investors to own what he described as an “actual chunk of the company onchain.”
This approach aims to address the fact that currently, less than 0.25% of global assets are represented on blockchain rails.
Institutional infrastructure and regulatory strategy
The decision to launch outside the U.S. is a result of the jurisdictional split between American regulators. While the Commodity Futures Trading Commission (CFTC) oversees derivatives, actual equity ownership belongs to the Securities and Exchange Commission (SEC). Until a comprehensive framework for trading tokenized securities exists within the U.S., Coinbase is focusing its efforts on registered institutional users in regions like Abu Dhabi.
Marcel Kasumovich, Deputy Chief Investment Officer at Coinbase Asset Management, stated that integrating the Chainlink standard is essential for creating compliant solutions. He noted that such infrastructure is a prerequisite for widespread institutional adoption of digital assets. One of the flagship users of the platform is Peregrine, a subsidiary of PSG Digital based in Abu Dhabi, which operates within the ADGM’s RegLab sandbox.
Coinbase teased several high-profile stocks for the platform, including Nvidia (NVDA), Google (GOOG), SpaceX, Strategy (MSTR), and Bitmine (BMNR). While a complete list of supported equities has not been released, the exchange expects more announcements during a product event scheduled for 3 p.m. ET today.
The success of the “Everything Exchange” push depends on Coinbase’s ability to diversify beyond simple crypto trading and into established global markets.
The tokenized stock sector remains small compared to the trillions traded daily in traditional markets. However, the promise of 24/7 trading and instant on-chain settlement continues to drive development. As firms like Coinbase refine the legal and custody structures of these assets, they aim to provide a more reliable alternative to the unbacked representations of traditional stocks that have previously struggled with delivery and redemption.