Yazılar

Coinbase Seeks SEC Approval to Offer Tokenized Stocks on Blockchain

/in /tarafından

Coinbase is pursuing approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized equities—digitally represented stocks traded on blockchain technology—to its customers, according to Paul Grewal, Coinbase’s chief legal officer.

If approved, Coinbase would enter direct competition with retail brokers like Robinhood and Charles Schwab by allowing users to trade stocks in token form. This new service could open a significant business segment for the crypto exchange.

What Are Tokenized Equities?

Tokenized equities convert traditional shares into digital tokens, enabling investors to hold and trade ownership rights on a blockchain network. Advocates argue that tokenization can:

  • Reduce trading costs

  • Enable faster settlement of trades

  • Allow 24/7 trading outside conventional market hours

Challenges and Regulatory Context

Despite enthusiasm, the concept faces hurdles, including limited secondary-market liquidity and the absence of global regulatory standards, as highlighted by a recent World Economic Forum report.

Currently, U.S. law requires securities trading platforms to be registered as broker-dealers. Coinbase previously faced an SEC lawsuit for allegedly operating as an unregistered broker-dealer, but the case was dropped this year under the Biden administration.

To move forward, Coinbase needs a “no-action letter” or exemptive relief from the SEC—an assurance that the SEC would not take enforcement action if Coinbase offers tokenized stock trading.

Grewal emphasized that such regulatory clarity is vital for boosting institutional adoption of crypto and blockchain technologies.

Market Context

  • Coinbase’s competitor Kraken recently launched tokenized U.S. equity tokens, called xStocks, but only outside the U.S.

  • The SEC under President Trump has adopted a more industry-friendly approach, dropping several lawsuits against crypto firms and creating a task force for digital asset regulation.

No official submission date or launch timeline for Coinbase’s tokenized equities service has been disclosed.

Trump Media Partners with Crypto.com to Launch ETFs Through Truth.Fi

/in /tarafından

Trump Media & Technology Group, the company behind the Truth Social platform, announced on Monday that it has partnered with Crypto.com to launch exchange-traded funds (ETFs) and related products under its Truth.Fi brand. This collaboration is aimed at offering financial products that include both digital assets and traditional securities with a “Made in America” focus.

Following the announcement, Trump Media’s shares rose 10.5% in after-hours trading, though the company’s stock has fallen 38% over the past three months.

The ETFs, which will be available through Crypto.com’s broker-dealer Foris Capital, are expected to include cryptocurrencies like bitcoin and cronos, alongside securities from various industries. These funds are slated for launch later this year and will be offered in the U.S., Europe, and Asia.

Crypto.com will provide key infrastructure, including backend technology, custody services, and cryptocurrency support for the ETFs.

The partnership follows the January launch of Trump Media’s Truth.Fi brand, signaling the company’s expansion into financial services and fintech, particularly in the cryptocurrency space. Trump Media had previously announced plans to invest up to $250 million through Charles Schwab to diversify its cash holdings, which stood at over $700 million at the end of 2024. This new venture includes investments in ETFs, separately managed accounts, and cryptocurrencies.

Trump Media also revealed in February that it has applied for trademarks for several investment products, including the Truth.Fi Bitcoin Plus ETF, Truth.Fi Made in America ETF, and Truth.Fi U.S. Energy Independence ETF, which focus on sectors like bitcoin, U.S. manufacturing, and energy.

Trump Media Expands into FinTech with Truth.Fi Amid Crypto Surge

/in /tarafından

Truth Social’s parent company, Trump Media and Technology Group (TMTG), has announced the launch of Truth.Fi, a financial services and FinTech brand, as it seeks to capitalize on the booming cryptocurrency market.

Key Highlights:

  • Truth.Fi Launch & Market Reaction:
    • TMTG’s board has approved the launch of Truth.Fi, expanding its financial services footprint.
    • The announcement sent shares soaring over 11% in early trading.
  • Investment Strategy:
    • The board authorized a $250 million investment through Charles Schwab to diversify cash holdings.
    • Assets will be allocated across ETFs, separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies.
  • Political & Market Context:
    • The move follows Donald Trump’s return to the White House and the election of pro-crypto lawmakers.
    • Trump has championed digital assets, aiming to establish the U.S. as the “crypto capital of the planet.”
  • Implementation & Future Plans:
    • SMAs will be developed with Charles Schwab, which will advise on investment strategy.
    • Truth.Fi products and services are set to roll out in 2025, pending regulatory approvals.
  • Expanding Business Ventures:
    • TMTG has also entered the streaming industry with Truth+ Streaming, launched last year.
    • The company reported a $19 million Q3 loss in 2023, attributed to legal fees and streaming costs.

TMTG’s move into FinTech and cryptocurrency aligns with its broader strategy of leveraging political momentum to expand its digital footprint.