Tokenized stocks
Add Axios as your preferred source to
see more of our stories on Google.
Everyone is tokenizing stocks all the sudden, to wild applause.
Why it matters: Coinbase and Robinhood have notched all-time highs in their stock prices in recent days amid announcements about putting equities on blockchains.
Catch up quick: Coinbase has asked the U.S. Securities and Exchange Commission for permission to tokenize stocks and offer them to customers.
- Yesterday, Robinhood announced it would bring tokenized versions of some 200 U.S. equities to the European market. Tokens will represent equity held by the company.
- Robinhood investors will earn dividends, but they won't have voting rights.
Zoom out: But that's not even close to all the news we have seen along these lines.
- Kraken, a U.S.-based crypto exchange that has most of its client base in Europe, also began rolling out tokenized equities outside the U.S.
Under the hood: Crypto infrastructure firm BitGo, and tokenized equity firm, Dinari, announced a partnership yesterday aimed at making it easier for developers to offer products built from tokenized equities.
What they're saying: "There's growing interest in tokenization because it enables value to move at internet speed – unlocking capital efficiency that's always-on," Raghu Yarlagadda, CEO of FalconX, a prime broker for crypto investors, tells Axios via email.
- To illustrate how tokenization increases the utility of investments, he noted that FalconX accepts BlackRock's tokenized fund, BUIDL, as trading collateral.
The bottom line: The market seems to see the appeal.
