Tokenized Stocks Begin Trading on Base

Four tokenized stocks issued by Coinbase ($COIN) have started trading on Base. The initial targets include major U.S. stocks such as NVIDIA ($NVDA), Apple, Meta, and Alphabet.

Base announced on August 24 that Coinbase's tokenized stocks were launched on its platform. The first assets are NVDAc, AAPLc, METAc, and GOOGLc, with the Base stock page explaining that this product is only available to eligible users outside the U.S.

The product structure combines physical stock custody with on-chain distribution. Base stated that Coinbase's tokenized stocks are linked 1:1 to physical stocks within a regulated custody structure. The custody structure is connected to Alpaca, and the issued tokens utilize the Base-based B20 standard.

B20 includes operational mechanisms that differ from standard ERC-20 tokens. The Base development blog explained that B20 is designed to handle dividends, stock splits, transfer restrictions, freezing, and recovery functions. This indicates that tokenized stocks do not operate solely like unregulated cryptocurrencies.

Aerodrome has been positioned as a key liquidity route for trading in this launch. The Base stock page introduced Aerodrome as a deep liquidity provider for tokenized stock trading pairs. Aerodrome is a decentralized exchange within the Base ecosystem, marking a connection point for this product with DeFi trading.

Initial trading volume figures vary depending on the time of aggregation. CryptoBriefing reported that the cumulative trading volume reached approximately $100.3 million (about 141.9 billion KRW) within a few days post-launch, with a daily peak of around $27 million (about 37.2 billion KRW). Crypto Economy cited Token Terminal data as of August 28, noting a cumulative trading volume of $94.6 million (about 130.4 billion KRW).

There was also a price reaction. CoinMarketCap reported that Aerodrome's AERO token rose by 11.6% within 24 hours following the launch announcement. This figure reflects market reactions immediately after the announcement and does not indicate future price trends.

A significant point for Korean readers is the scope of the term 'global stocks.' The confirmed initial assets are four major U.S. stocks. U.S. users are excluded, and Base only stated that more assets will be added. This launch is more of an experiment to move a portion of U.S. stocks into the Base DeFi rather than a full opening of the global stock market.

The tokenized stock market has already grown into a competitive area between exchanges and blockchain networks. We previously reported on the trend of competition in tokenized stock accounts. This Base launch is also an example of connecting real-world assets (RWA) with DeFi liquidity.

The initial market is still small, but movements have been rapid. We previously reported that Base's NVDAc/USDC pair traded approximately $4.5 million (about 6.2 billion KRW) within four hours after NVIDIA's earnings announcement, showcasing on-chain trading activity even after traditional markets closed. This can be interpreted as an example of extending trading hours.

However, there are differing interpretations regarding the rights structure. Ledger Insights noted that while Coinbase tokens assert economic rights to physical stocks, the clarity of the custody and trust structure for general users is a matter for consideration. Base and Coinbase emphasize the linkage to physical stocks, while some analytical media separately address the wrapper structure and rights interpretation.

Unchained quoted Alex Cutler, CEO of Dromos Labs, stating that NVDAc was traded even after the Nasdaq closed following NVIDIA's earnings announcement. This case shows that on-chain stock trading can provide some price discovery during off-market hours, but it also reveals the potential for divergence between the underlying stock and token prices.

In terms of market structure, the liquidity pathway is more important than issuance for tokenized stocks. Even if investors can hold tokens, if trading counterparties, redemption structures, and market-making conditions are insufficient, there can be a gap between the token price and the underlying stock price. Aerodrome's initial prominence can also be interpreted as a mechanism to make issued assets into tradable products.

For domestic investors, the key issues are the rights structure and jurisdictional limitations rather than accessibility. Since Base's official materials state that it is only for eligible users outside the U.S., the availability for domestic users and investor protection systems need to be verified separately. While tokenized stocks can be traded on-chain, it cannot be definitively stated that they have the same rights structure as holding stocks in a regular securities account.

This launch is significant as it marks the beginning of Base linking stock-type RWAs with DeFi trading, lending, and routing infrastructure. However, with usage restrictions, custody structures, price discrepancies, and the control features of B20, it is difficult to view this simply as a product that moves traditional stock trading onto the blockchain.