A five year framework from the Securities and Exchange Commission permits qualifying tokenized U.S. stocks to trade through automated market makers on public blockchains. Goldman Sachs and Citizens analysts state the exemption benefits Coinbase through its custody services and Base network. Circle would likely see higher demand for USDC as a settlement asset and collateral.

Robinhood must provide full shareholder rights to its offshore tokenized products to utilize the framework. Trading limits and issuer opt-out rights are included to limit the impact on traditional exchanges. Tokenized stocks on the Base network recently surpassed $1 billion in total trading volume.