Base, the Ethereum layer-2 network incubated by Coinbase, is preparing to launch tokenized equities backed 1:1 by underlying shares, according to Jesse Pollak, the protocol’s creator and Coinbase’s head of protocols. The move marks a strategic pivot from Base’s early social-app focus toward becoming a regulated on-ramp for traditional financial assets.
Speaking at the EthCC conference in Brussels, Pollak said the infrastructure for tokenized stocks is “imminent” and will allow users to trade fractionalized shares of major U.S. equities directly on-chain. The tokens will be issued by a regulated entity and fully backed by the underlying securities, with redemptions processed through traditional broker-dealer rails. Pollak framed the launch as a step toward unifying crypto’s 24/7 settlement with the compliance framework of traditional markets.
Base has quietly become one of the most active L2s by transaction count and stablecoin supply, hosting over $3.5 billion in bridged USDC and processing millions of daily transactions. But much of that activity has centered on memecoins and social applications like Farcaster. Tokenized equities would open the chain to a fundamentally different user base — retail investors and institutions seeking compliant exposure to tokenized real-world assets.
The announcement comes as major TradFi players accelerate their own tokenization efforts. BlackRock’s BUIDL fund has surpassed $500 million in tokenized Treasury holdings, while Franklin Templeton and WisdomTree have launched similar products on competing chains. JPMorgan’s Onyx platform has settled over $1 trillion in tokenized repo transactions. Base’s entry adds a consumer-facing distribution layer backed by Coinbase’s regulatory licenses and retail reach.
Regulatory clarity remains the key gating factor. The SEC has signaled openness to tokenized securities that comply with existing registration and transfer-agent rules, but has cracked down on platforms offering unregistered tokenized stocks. Base’s approach — partnering with a registered broker-dealer for issuance and custody — aims to thread that needle. Pollak said the team has been engaging with regulators for months to ensure the product fits within the existing securities framework.
For Base, the stakes are high. The L2 faces intensifying competition from Arbitrum, Optimism, and newer entrants like Linea and Blast, all vying for the same liquidity and developer mindshare. A compliant tokenized equities product could differentiate Base as the “regulated” L2 of choice for institutions and retail alike. As Cointelegraph reported, the launch represents Base’s most ambitious bid yet to bridge the gap between crypto-native users and traditional finance.
