Coinbase plans to introduce prediction markets and tokenized stocks on December 17, expanding its reach into two of the fastest-growing sectors in the digital economy.
According to media reports, Coinbase will not rely on external partners to source equities and instead will release them internally. Soon, Coinbase users will be able to trade blockchain-based representations of equity securities and speculate on future events.
Coinbase aims to become a one-stop shop for all asset types. However, its foray into the blockchain-based prediction market will not be easy. The company will face stiff competition from market leaders like Polymarket and newcomers like Edel Finance, an on-chain securities, lending, and borrowing infrastructure explicitly built for tokenized equities diversification.
The Rise of Prediction Markets
Coinbase is the largest US-based crypto exchange with over 105 million verified users. The platform launched in 2012 and has swiftly risen to the top of the crypto industry. However, as the investors’ interest in digital assets cools, the company is looking to explore new financial territories.
Its expansion into the prediction markets is powered by Kalshi, a web-based prediction betting platform launched in 2021. For now, Kalshi will be the only prediction markets operator working with Coinbase, but their partnership is not exclusive. The exchange seeks to expand its Coinbase tokenized stocks services to include other operators in the long run.
Coinbase is not the first trading platform to enter the tokenized equities market. Some of its rivals in the crypto exchange market, such as Gemini and Kraken, have already launched similar services to non-US users. In June, Robinhood, an American financial services company, launched US stock and ETF tokens in the EU, giving eligible customers exposure to US equities.
Coinbase’s announcement comes as the equities market heats up. Recent competitor offerings such as the Edel Finance testnet & go-to-market positioning, has allowed users to lend tokenized stocks or use them as collateral to borrow stable assets in a safe environment.
The Next Step in Equities Market Evolution
Plans from Coinbase and other major actors in the crypto industry to launch tokenized stocks expand access and increase investors’ trust in these assets. However, this is only a first step toward a functioning market. The current system still faces significant challenges, including opaque pricing, long settlement cycles, and limited transparency. A native securities lending layer would enable users to access and use tokenized equities to their full potential.
Edel Finance was designed to address these challenges. The platform operates as a decentralized securities lending market for tokenized equities with multiple financial tools. Users can earn yield from lending tokenized stocks, borrow stable assets, and access transparent interest rates driven by supply and demand.
Andrés Soltermann, the Edel CEO, commented on the platform’s goals.
“Tokenized stocks solve the problem of access, but access alone does not create a functioning market. Without lending, borrowing, and short-selling infrastructure, tokenized equities remain static representations rather than productive financial instruments. Real markets require capital efficiency, liquidity, and risk management, and that is the gap Edel is built to address.”
According to the official Edel Finance documentation, the entire Edel ecosystem is governed by open, on-chain smart contracts. This design eliminates the discretionary intermediaries & brokers that have dominated the lending market in recent years, while increasing fairness and transparency.
The recently-launched testnet allows users to buy tokenized stocks from prominent companies, including NVIDIA and Meta. The Edel Finance ecosystem will enable users to complete transactions using the native $EDEL token or bETH. They can then lend the tokenized stocks to earn an estimated yield.
Alternatively, they can use stocks or crypto as collateral to open on-chain long and short stock exposure.
The Coinbase Impact on the Future of Tokenized Stocks
The equities market can only become more appealing to investors following Coinbase’s entry. The exchange will introduce prediction markets and tokenized stocks to its global audience, scaling the acquisition of these assets and potentially increasing its annual trading volume, which now exceeds $1 trillion.
The equities market will benefit from new service providers, including established companies like Coinbase or up-and-coming innovators like Edel Finance. The latter addresses essential industry issues, enabling users to access equities and manage them efficiently by harnessing the power of blockchain technology.
Following the testnet launch, Edel Finance prepares for the mainnet launch and the expansion toward a user-friendly retail interface. The project will also implement more integrations, including institutional-grade APIs for programmatic access.
“Exchanges bring assets on-chain, but infrastructure determines what those assets can actually do,” said Andrés Soltermann. “Edel is focused on building the capital markets layer that allows tokenized stocks to function like real, productive financial instruments.”
FAQs
Is Edel Finance better for diversification than Coinbase tokenized stocks?
Coinbase provides an easy entry point for investors seeking a solid distribution of tokenized equities. Edel Finance offers more than trading opportunities. The platform focuses on delivering broader diversification and tools that help asset owners earn yield without selling their stocks.
How can equities traders bring their passive investments to life?
Equities traders can earn more from their passive investments through lending, collateralization, and tokenization. Edel Finance offers these options that allow users to earn yield while still holding their assets, which is why some users are refering to Edel as the “Aave for stocks.”
Can stocks and crypto traders use one platform to bring all of their investments under one roof?
Yes. Coinbase is one of the many multi-asset platforms developing into an all-in-one financial service. Edel is building the infrastructure layer that enables financial operations such as lending and tokenization.
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Source: https://coinedition.com/coinbase-tokenized-stocks-offering-edel-finance-set-to-transform-equities-market/
