Coinbase is renewing its effort to tokenize its own stock $COIN

as part of a broader push to bring security tokens to the US market, an initiative it first attempted in 2020 but abandoned due to regulatory hurdles.

Coinbase is planning to apply for a U.S. crypto exchange license and launch security tokens, including a tokenized version of its own stock, as part of a broader push to bring the asset class to the market, according to a report by Blockworks.

The company had previously attempted to tokenize its stock in 2020 but abandoned the initiative due to regulatory hurdles. However, with a newly formed crypto task force at the Securities and Exchange Commission and the company’s own expanding product suite, Coinbase sees an opportunity to integrate blockchain-based securities into traditional finance.

During the Morgan Stanley TMT Conference, Chief Financial Officer Alesia Haas expressed optimism about the regulatory landscape and hinted at Coinbase’s ambitions to expand its offerings.

“I now believe that our US regulators are looking for product innovation and looking to get products going,” Haas said.

Haas further disclosed that Coinbase had initially planned to go public by issuing a security token representing its $COIN stock. This vision involved merging blockchain technology with traditional finance to create a novel approach to the company’s listing.

“We talked about going public with a securitized token that would have granted a portion of our stock to employees and provided a framework for profit sharing with our community,” she explained.

However, the company ultimately opted for a traditional direct listing on April 14, 2021, in response to several regulatory complexities. These included the unavailability of U.S. exchanges licensed to trade security tokens and the need for additional approvals from multiple bodies, rendering the initial securitized token offering unfeasible.

Despite this setback, Coinbase remains interested in exploring this space further. According to Haas, they are planning to apply for a U.S. crypto exchange license and expand their product offerings accordingly.

“We’re planning to apply for the crypto exchange license and continue to expand the product offering in the U.S.,” she said.

This expansion could include bringing some of their internationally available products to the U.S. market. These products, which are already being used by crypto traders globally, could be adapted for the specific regulatory landscape in the United States.

Security tokens, which operate like traditional securities but trade on blockchain networks, can provide investors with unique benefits. They can grant voting rights in the company, participate in profit-sharing schemes, and engage in community-driven initiatives, all while enjoying efficient transactions and settlement times.