Coinbase, Robinhood, Circle seen ahead in SEC token pilot
Goldman Sachs and Citizens analysts say firms already tokenising stocks lead under the SEC's five-year exemption, which requires dividends and votes.
Coinbase, Robinhood and Circle are best placed to benefit early from the US Securities and Exchange Commission's new five-year innovation exemption, analysts at Goldman Sachs and Citizens said in research notes. The exemption allows tokenised US stocks to trade through automated market makers (AMMs) on public blockchains.
What the exemption requires
Two conditions shape the pilot. First, tokens have to keep the rights that come with owning a share, namely dividends and voting. Second, trading is subject to volume caps. Those limits keep the programme narrow, but they also favour companies that are already building compliant products.
How each firm is placed
Coinbase
Coinbase's current tokenised-equity product already comes with shareholder rights and dividend payouts in line with the underlying stock. Chief executive Brian Armstrong has said "voting rights are coming soon." The company also provides custody and runs its Coinbase Tokenize infrastructure.
There is one obstacle. Coinbase's exchange matches trades through a central limit order book, whereas the SEC framework is designed around AMMs. Running a trading venue directly under the exemption would therefore need additional infrastructure.
Robinhood
Robinhood's offshore stock tokens do not yet carry the full ownership rights the exemption demands. The company has also drawn public criticism from AMC's chief executive for offering AMC tokens without approval. CEO Vlad Tenev has indicated that share redemptions and voting rights will be added, and analysts expect a US product to follow quickly.
Circle
Circle stands to gain indirectly. Its USDC stablecoin could become the settlement and collateral layer for on-chain stock markets. That would help Coinbase as well, since it shares in USDC's economics.
Little threat to Nasdaq and ICE for now
The analysts do not see traditional exchange operators coming under pressure in the near term. Trading caps, the option for issuers to opt out, and the difficulty AMMs have with deep, liquid markets should keep the pilot small for the time being.
Why this matters in India
The exemption is the clearest case so far of a mainstream regulator writing rules for on-chain markets instead of working around them. India is running a tokenised-bond pilot of its own, and the US approach to protecting shareholder rights is likely to influence how similar discussions unfold here.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
