Analysts Name Coinbase, Robinhood, Circle as Winners in SEC Tokenized-Stock Push

SEC tokenized-stock push — Analysts from Goldman Sachs and Citizens say Coinbase, Robinhood, and Circle are positioned to benefit from the U.S. Securities and Exchange Commission’s new initiative to allow tokenized stocks to trade on public blockchains.

The SEC’s five-year innovation exemption permits qualifying tokenized U.S. stocks to trade via automated market makers. Analysts noted this creates new opportunities in custody, tokenization infrastructure, and stablecoin settlement.

Coinbase’s existing tokenization, custody, and stablecoin businesses could allow it to capitalize on the development. Robinhood would need to add features like shareholder rights to make its stock tokens compliant with the new framework.

Circle stands to gain from increased use of its USDC stablecoin for settlement and collateral in these new on-chain markets. The analysts expect trading caps and technical limits to protect traditional exchanges from significant competition in the near term.