$COIN (-1%)
$JPM (-0,04%)

Coinbase applies for SEC approval for tokenized shares

The listed crypto exchange Coinbase has applied to the US Securities and Exchange Commission (SEC) for approval to offer tokenized shares to its customers.

If the move is approved, the company could offer share trading via blockchain technology, compete with retail brokers and open up a new business segment. Representatives of Coinbase rate the initiative as a high priority for the company. The SEC did not comment further on the announcement, and it is not known whether Coinbase has already made an official application or when a proposal might be published.

Tokenized equity

The concept represents a process in which company shares are tokenized, similar to crypto trading. However, instead of holding the securities directly, investors own tokens that represent ownership of the securities.

Proponents of the idea said tokenized shares could reduce costs, enable faster settlement times and facilitate round-the-clock trading. Critics, on the other hand, say the concept has gaps that need to be addressed. The World Economic Forum mentioned in a report that sufficient liquidity on the secondary market and a clear global standard are required for the introduction of tokenized shares.

Tokenized shares are not currently a viable trading option in the US, although several companies, including competitors, are experimenting with the idea. For example, crypto exchange Kraken announced the launch of xStocks in partnership with Backed and the Solana Foundation. xStocks are tokens of US stocks that will be available on certain markets outside the US.

In order to offer this new service, Coinbase would need to obtain a no-action letter or exemption from the SEC. This means that the regulator would pledge not to take enforcement action should Coinbase implement the plan. In most cases, companies that offer securities trading must be registered as broker-dealers. Coinbase is not registered as such, and the regulator sued the company in 2023 for allegedly acting as such without the required registration. The SEC dropped the case this year under President Donald Trump's administration.

The idea comes as Trump attempts to reform US crypto policy after courting money from the industry during the election campaign. The US president appointed industry-friendly regulators and hosted industry representatives at the White House. Cryptocurrencies reacted positively, with Bitcoin reaching new all-time highs this year.

https://thepaypers.com/online-mobile-banking/coinbase-seeks-approval-from-the-sec-for-tokenised-equities--1274148

JPMorgan tests deposit token on a blockchain linked to Coinbase

JPMorgan Chase has launched a pilot program for a token representing dollar deposits, suggesting that financial institutions are venturing into the digital asset space.

Representatives from JPMorgan announced that the company would transfer a fixed amount of JPMD tokens from the bank's digital wallet to Coinbase Global, one of the largest cryptocurrency exchanges in the US, in the coming days.

Token issuance and transfer on Coinbase's base blockchain

The issuance and transfer of these tokens will take place via Base, a public blockchain connected to Coinbase, and will be denominated in US dollars. After this transfer, institutional customers of Coinbase have the option to use these deposit tokens for transactions.

JPMorgan (JPM) plans to run a pilot program for several months before potentially expanding to additional users and currency units, subject to regulatory approvals. Officials pointed out that deposit tokens are a "superior alternative to stablecoins" for institutional clients, as they are based on fractional banking and thus offer greater scalability.

In the future, deposit tokens such as JPMD could also be interest-bearing and protected by deposit insurance, which distinguishes them from current stablecoins.

In late Tuesday trading, shares of JPMorgan Chase (JPM) were down 0.4%, while Coinbase (COIN) was down 3.1%. This coincided with a 1.5% drop in Bitcoin (BTC-USD) to USD 105,200.

Further developments from JPMorgan

In June 2025, JPMorgan entered into a partnership with Conferma, a provider of virtual card technology.

The updated integration of Conferma into the JPMorgan Payments Partner Network enabled EU-based businesses to issue and manage virtual cards more effectively. This collaboration enabled the use of multiple currencies and increased flexibility, allowing for the modernization of payments across the region. With the increasing demand for faster and more secure payment solutions, the adoption of virtual cards is growing rapidly, with 88% of businesses currently using or considering using them.

https://thepaypers.com/cryptocurrencies/jpmorgan-tests-deposit-token-on-blockchain-linked-to-coinbase--1274152

$$JPM (-0,04%)

In the last two weeks, the JPMorgan Chase share price has been volatile. On February 19, 2025, it reached a new all-time high of USD 280.25 (congratulations to all investors). Since then, the share price has fallen and was quoted at EUR 239.42 on March 7, 2025, a loss of around 15 %.

This downward movement led to the share price falling below important moving averages, including the 50- and 100-day lines.

Despite the recent decline, the share's long-term performance remains strong. Over a six-month period, it has risen by around 14%.