Coinbase-backed Layer 2 network Base is preparing to launch 1:1-backed tokenized equities in what its leadership describes as an imminent rollout, Cointelegraph reported Tuesday. The move marks a strategic pivot for the Ethereum scaling solution, which initially positioned itself as a social-first platform before shifting toward financial infrastructure.
Jesse Pollak, Base’s creator and head of protocols at Coinbase, told Cointelegraph that the tokenized equities product would allow users to trade tokenized versions of traditional stocks on-chain, settled 24/7 with near-instant finality. Each token will be fully backed by the underlying equity held by a regulated custodian, mirroring the structure already deployed by platforms such as Backed Finance and Ondo Finance.
The announcement signals Base’s ambition to capture a slice of the growing real-world asset (RWA) tokenization market, which has seen total value locked surpass $10 billion across Ethereum and its Layer 2s, according to RWA.xyz data. Tokenized U.S. Treasuries have dominated the category to date, but equities are emerging as the next frontier as regulators in jurisdictions such as Singapore, the EU, and the UAE provide clearer frameworks.
Base’s pivot reflects a broader recalibration among Layer 2 networks. After an initial wave of social applications — including friend.tech and Farcaster clients — failed to sustain volume, several L2s have redirected resources toward DeFi and institutional-grade financial primitives. Base’s integration with Coinbase’s custodial and compliance infrastructure gives it a potential distribution advantage over competitors such as Arbitrum and Optimism.
Pollak acknowledged the regulatory complexity but said Base is working within existing securities frameworks, targeting non-U.S. users initially. The tokens will not be offered to U.S. persons, consistent with the approach taken by other tokenized equity issuers. A formal launch date was not disclosed, but Pollak indicated the technical infrastructure is complete and the team is finalizing legal and compliance reviews.
Market observers noted that Base’s entry could accelerate adoption by lowering the barrier for retail and institutional users already onboarded through Coinbase. With over 100 million verified users, Coinbase’s distribution funnel remains one of the largest in the industry. If tokenized equities gain traction on Base, it could catalyze a broader shift of traditional asset trading onto public blockchains.
Source: Cointelegraph
