Coinbase is entering the tokenized equity race by offering on-chain shares of COIN itself, promising genuine share ownership and dividend eligibility — a step beyond simple synthetic exposure. The move aligns with broader Wall Street momentum around tokenized securities, with players like BlackRock and Franklin Templeton already expanding on-chain asset offerings. COIN's FY2025 revenue of $7.2B (+9.4% YoY) and 18.1% net margins give the company a credible financial foundation to back the initiative.

The second-order setup is whether Coinbase can capture fee revenue from the emerging tokenized securities infrastructure layer — essentially becoming the exchange and the custodian for a new asset class. Watch for regulatory clarity from the SEC on tokenized equities, as that is the single biggest gating factor for institutional adoption; any friction there could delay the monetization timeline materially.