Coinbase Links Tokenized US Stocks To DeFi On Base

The crypto exchange platform Coinbase aims to bring Wall Street into DeFi. Indeed, the exchange is proceeding with the official deployment of its tokenized shares on Base, its own Layer-2 network. This market is breaking new records. Thus, it reached an amount of 2.3 billion dollars by mid-2026. The main players in the sector aim to make these shares usable tools in decentralized applications.

A technical architecture based on the B20 standard and Chainlink infrastructure

In order to develop the circulation on the network of major shares of the US stock market such as NVIDIA (NVDAc), Apple (AAPLc), Alphabet (GOOGLc) or Meta (METAc), Coinbase created tokens based on the B20 standard, immediately executed on its second-layer blockchain Base. Transaction fees are reduced while execution is almost instantaneous thanks to a strategic and technical choice.

Moreover, the custody of each B20 token is at a strict 1:1 ratio. Such a system facilitates the fragmentation of shares for investors starting from small amounts. It also allows the direct holding of these shares in non-custodial wallets.

The creation of tokens on decentralized ledgers requires precise and continuously updated price streams. The Coinbase exchange chose Chainlink as the oracle infrastructure for all its tokenized shares issued on Base.

Thus, Johann Eid, Chief Business Officer at Chainlink Labs, highlights the importance of such deployment: “tokenized assets reach their full potential only when the overall ecosystem can build with them through DeFi. With Chainlink, Coinbase leverages secure and reliable price data required to unlock the utility and distribution of tokenized shares within DeFi, while accelerating the convergence between TradFi and DeFi”. Through Chainlink’s price data feeds, smart contracts of lending and exchange protocols reach market values in real-time.

The key features of this infrastructure rely on many major technical specifications :

• Native execution on Base : the use of Ethereum Layer-2 to ensure high transaction throughput and reduce network fees to a few cents ;
• The B20 issuance standard : it is a token designed to maintain full composability with smart contracts in the decentralized ecosystem ;
• Chainlink price oracles : continuous update of underlying asset prices on-chain to feed partner DeFi protocols.

A regulated custody model under international jurisdiction

The legal security of these tools is linked to the reality of the underlying asset. Indeed, each B20 token corresponds to a physical security acquired and kept in custody isolated from bankruptcy risk by the financial intermediary Alpaca, under the regulation of the Abu Dhabi Global Market (ADGM). Such a product is reserved for users residing outside the United States.

It requires passing verifications (KYC) in compliance with local requirements. Antonio Garcia-Martinez, head of growth at Base, explains this positioning : “Base has built one of the most dynamic DeFi ecosystems, and Chainlink’s oracle infrastructure unlocks a new utility for tokenized assets. With institutional-grade market data now online, we offer millions of users access to financial primitives that were until now locked behind traditional safeguards”.

Alongside synthetic derivative contracts, the structure set up by Coinbase strives to ensure that economic rights related to shares benefit the token holders. Dividends paid by companies are distributed to owners of B20 tokens on Base, while the infrastructure automatically handles corporate actions such as stock splits. This legal durability builds a direct bridge between regulated stock markets and the distributed ledger.

The use of tokenized shares as collateral and the search for yield

The main attraction of these shares lies in their ability to cooperate effortlessly with decentralized finance protocols. While a share held in a traditional securities account remains immobilized, a NVDAc or AAPLc token on Base can be offered as collateral on a protocol like Aave to take out a loan in stablecoins.

It can also be deposited in automated liquidity pools on Aerodrome. Users can thus generate additional yield or develop arbitrage strategies 24/7 to overcome the time constraints related to US stock markets.

Such an initiative implemented by Coinbase justifies the intensification of digitizing financial securities, but its extension in the future will depend on the evolution of international regulatory and normative frameworks. The choice of an international deployment under the ADGM framework illustrates the caution of various actors facing the strict regulatory uncertainties in the United States concerning the distribution of tokenized securities.

While challenges related to cross-border compliance remain real, the alliance between Coinbase’s issuance capacity, the accuracy of Chainlink and the speed of the Layer-2 Base lays the foundations for a unified global financial infrastructure.