Gaining On-Chain Exposure to Major US Stocks with GM Markets
Explore how GM Markets enables global users to trade tokenized US stocks and ETFs, providing on-chain access, self-custody, and DeFi composability. Understand the mechanics and benefits of tokenized equities.
Gaining On-Chain Exposure to Major US Stocks with GM Markets
Investors frequently seek direct exposure to leading companies in the evolving digital economy. Tokenized stocks offer a novel pathway to gain this exposure on-chain, merging traditional market access with decentralized finance (DeFi) utility. While a specific asset like Coinbase (COIN) stock is not currently available as a tokenized asset on our platform, GM Markets, currently in public beta, provides a permissionless and self-custodial pathway for global users (outside restricted jurisdictions) to trade other US-listed tokenized stocks and ETFs. This guide explores the benefits of tokenized equities and details how GM Markets facilitates on-chain access to these assets.
The Value Proposition of Tokenized US Equities On-Chain
Tokenized US equities represent ERC-20 tokens fully backed 1:1 by an actual share held in custody. This structure provides direct economic exposure to leading companies without requiring a traditional brokerage account. For investors seeking to integrate their equity holdings with DeFi strategies, a tokenized asset like Coinbase (COIN) stock, were it to become available, would be a compelling addition. This approach allows for enhanced composability and flexibility within the decentralized ecosystem.
Companies like Coinbase Global Inc. demonstrate the evolving landscape of digital finance. Coinbase reported its First Quarter 2026 earnings on May 7, 2026. The company achieved $1.4 billion in total revenue and maintained positive Adjusted EBITDA at $303 million. Notably, its trading volume market share reached an all-time high of 8.6% across spot and derivatives crypto trading, and the average amount of USDC held on its platform reached $19 billion. Subscription and services revenue generated $584 million, highlighting a shift towards more diversified revenue streams. New ventures like retail derivatives and prediction markets also showed promising annualized revenues shortly after launch, underscoring the company's "Everything Exchange" strategy. For more details, see Coinbase's First Quarter 2026 Financial Results.
Similarly, the Base network, an Ethereum Layer 2 solution incubated by Coinbase, has implemented significant upgrades. On February 18, 2026, Base announced its transition to develop its own unified stack for faster upgrades. A key milestone was the Azul network upgrade, launched on mainnet on May 28, 2026, which introduced a multiproof system combining TEE and ZK provers, aiming for enhanced security and faster withdrawals from Base to Ethereum. This upgrade also consolidated Base onto a single client stack, targeting 1 gigagas per second throughput. The Beryl hard fork, live around late June/early July 2026, further reduced withdrawal finality and integrated with Reth V2 for efficiency. As of July 6, 2026, Base maintains a strong position among L2s in Total Value Locked (TVL), with $4.05 billion according to DefiLlama data.
The broader market for tokenized real-world assets (RWAs) is undergoing significant expansion. As of July 6, 2026, the RWA market capitalization is approximately $31.30 billion, with some reports indicating figures around $63.9 billion for tokenized assets on public blockchains. Binance Research reported the total value of RWA assets at approximately $31.7 billion as of June 2026. This sector has seen substantial growth, with the total value of tokenized RWAs reaching over $24 billion by February 2026, representing a 266% growth in 2025 according to RWA.xyz. Tokenized US Treasury debt is a leading category, reaching about $15 billion.
Market forecasts suggest sustained growth. McKinsey & Company projects RWA tokenization could reach $2 trillion by 2030, and Citigroup analysts project blockchain-based tokenization of real and financial assets could reach $4–5 trillion by 2030. These projections underscore the increasing demand for on-chain representations of traditional assets.
How GM Markets Facilitates On-Chain Access to Tokenized Equities
GM Markets provides a transparent platform for accessing a range of US-listed tokenized stocks and ETFs. Our approach prioritizes user control, transparency, and integration with DeFi. These core features apply to any tokenized stock available on our platform. To understand the mechanics and benefits of trading these assets, explore our comprehensive guide on tokenized stocks.
- Permissionless Access: We enable direct access to tokenized equities without the need for extensive traditional financial onboarding. Users can connect an existing external crypto wallet or create an embedded wallet using a Google account or email magic-link.
- Self-Custody: Your tokenized assets reside in your own self-custodied wallet. This means you maintain direct control and ownership over your investments, aligning with the core principles of decentralized finance.
- Composability: Tokenized equities on our platform are standard ERC-20 tokens. This allows them to be used across the broader DeFi ecosystem for various applications, such as lending, borrowing, or as collateral.
- Fractional Ownership: We enable fractional trading from as little as $1. This makes high-value stocks accessible to a wider range of investors, allowing for greater portfolio diversification even with smaller capital outlays.
- Transparent Backing: Every tokenized asset on GM Markets is fully backed 1:1 by a real share held in a segregated customer account at a regulated broker-dealer. Our reserves are independently attested on-chain in real time by Accountable, providing verifiable proof of backing.
A Step-by-Step Guide to Buying Tokenized Equities on GM Markets
The process for acquiring tokenized stocks on GM Markets is designed for simplicity and efficiency. While tokenized Coinbase (COIN) stock is not currently offered on our platform, these steps illustrate how you would purchase any available tokenized equity:
Step 1: Connect Your Wallet
Begin by visiting the GM Markets platform and connecting your preferred wallet. You can use an existing external crypto wallet or create a new embedded wallet. Our embedded wallets are operated by Privy using multi-party computation (MPC), enhancing security by distributing key management.
Step 2: Deposit Funds
Once your wallet is connected, you will need to deposit funds. We accept stablecoins such as USDC and USDT, which are unified as USDF on the platform for a seamless experience across supported chains including Base, Arbitrum, Ethereum, and Optimism. For added convenience, you can also deposit funds using traditional fiat rails like Apple Pay, card, or bank transfer, where available.
Step 3: Find Tokenized Assets
Navigate to our trading interface. Here, you would typically search for the ticker symbol of the desired tokenized stock. Please note that while we offer a selection of major US-listed tokenized stocks and ETFs, Coinbase (COIN) is not currently among them. You can explore our available assets, such as Apple (AAPL), NVIDIA (NVDA), Tesla (TSLA), and Microsoft (MSFT).
Step 4: Place Your Trade
After selecting your desired tokenized asset, enter the amount you wish to trade, either in USD or the number of tokens. Our platform provides a real-time quoted price, which includes our transparent trading fee ranging from 10 to 20 basis points (0.10% to 0.20%). We maintain a straightforward pricing model with no custody fees, no inactivity fees, no dividend cuts, and no FX markups. You can review our full pricing details. Review the transaction details and confirm your order.
Step 5: Confirmation and Custody
Upon confirmation, your trade settles immediately on-chain. The tokenized asset will then appear in your self-custodied wallet, giving you direct control and ownership. You can view your new position within your portfolio on the GM Markets platform.
The Underlying Mechanics of Your Tokenized Position
Transparency and security are foundational to how GM Markets operates. Understanding the underlying mechanics provides confidence in your tokenized equity holdings:
- 1:1 Backing and Custody: Every tokenized share you hold is backed 1:1 by a real, physical share. These underlying shares are held in segregated customer accounts at regulated US broker-dealers, specifically Interactive Brokers and Alpaca Markets. This segregation ensures that your assets are held separately from the broker's own funds, offering a layer of protection. For real-time verification of our backing, we invite you to visit our Proof of Reserves page.
- Proof of Reserves: To ensure continuous transparency, Accountable, an independent third-party proof-of-reserves provider, attests our reserves in real time. This process involves reading broker balances directly and publishing them on-chain, allowing for public verification of the backing ratio for each tokenized asset.
- Total-Return Model: We operate on a total-return model for dividends and corporate actions. Instead of receiving separate cash payouts, any dividends generated by the underlying shares are reinvested. This increases the token's on-chain Net Asset Value (NAV), so your token's value reflects the dividend. Similarly, corporate actions like stock splits, mergers, or spin-offs are absorbed into the token's NAV, ensuring your economic exposure precisely tracks the underlying asset.
- Gas Abstraction: To simplify the on-chain trading experience, we abstract away gas fees. Users do not need to hold native chain tokens (like ETH, MATIC, or BNB) to cover gas costs on chains such as Base, Arbitrum, Ethereum, and Optimism. Instead, our smart account pays the native gas, and the equivalent amount is billed in USDF from your balance. This means you never directly interact with or see a gas line during your transactions.
- Security and Continuity: Your embedded wallet security is managed by Privy using multi-party computation (MPC), meaning no single party holds your full private key. Our smart contracts have undergone rigorous audits by leading firms including Sherlock, Halborn, Cantina, and Cyfrin, with SOC 2 Type II certification in progress. To learn more about our robust security measures, please visit our Security page. In the unlikely event that GM Markets discontinues operations, a designated security agent has the authority to work with the custodian to redeem outstanding tokens against the underlying shares, a path enforced by the on-chain contract and independent of GM Markets.
Beyond Trading: Composability and Your Tokenized Equities
The utility of tokenized equities on GM Markets extends beyond simple buying and selling. As standard ERC-20 assets, they integrate seamlessly into the broader DeFi ecosystem, offering expanded utility for your investments:
- Lending and Borrowing: You can lend your tokenized assets on decentralized lending protocols such as Aave or Morpho. This allows you to earn additional yield on your holdings by providing liquidity to others. Conversely, you can use your tokenized equities as collateral to borrow other digital assets, enabling various leverage or arbitrage strategies.
- Supplying Liquidity: Tokenized equities can be supplied as liquidity to decentralized exchanges (DEXs) like Uniswap or Curve. By providing assets to liquidity pools, you can earn trading fees from transactions, contributing to the efficiency of the decentralized market.
- Collateral for Advanced Strategies: Beyond basic lending, your tokenized assets can serve as collateral for more advanced DeFi positions, including margin trading on perpetuals protocols. This expands the strategic possibilities for managing your equity exposure within a crypto-native framework.
This composability is a central advantage over traditional brokerage accounts, transforming your equity exposure into productive capital that can generate additional returns within the DeFi landscape.
Frequently Asked Questions About Tokenized Equities
What are the risks associated with tokenized stocks?
Beyond general market volatility, tokenized stocks carry specific risks. These include regulatory uncertainty due to an evolving legal landscape, smart contract vulnerabilities if there are errors in the code, and custody risk related to securing private keys or relying on third-party custodians. There is also liquidity risk, as current tokenized markets can be less mature, and a potential for price divergence from the underlying traditional shares. Tokenized assets typically offer economic exposure but may not confer the same shareholder rights or regulatory protections as traditional equity holdings. We encourage you to review our risk and legal page for full details.
Do I get voting rights as a shareholder?
No, tokenized stocks on GM Markets provide economic exposure to the underlying asset, meaning you benefit from price movements and dividends (via NAV appreciation). However, they do not confer the shareholder voting rights associated with directly held traditional shares.
Is tokenized COIN available in my country?
GM Markets does not offer its services to users in the United States or other restricted jurisdictions. While tokenized Coinbase (COIN) stock is not currently offered on our platform, our available tokenized equities are accessible to users in permitted regions globally.
How are my trades settled and verified?
Trades on GM Markets are settled immediately on-chain. We use a Request-For-Quote (RFQ) execution model, where regulated market-making partners provide real-time quotes against the live underlying market. This ensures transparent pricing and efficient, back-to-back settlement upon acceptance.
Gaining On-Chain Exposure to Major US Stocks with GM Markets
While a specific asset like tokenized Coinbase (COIN) stock is not currently offered on GM Markets, our platform provides a secure, transparent, and self-custodial solution for accessing a range of other major US-listed tokenized stocks and ETFs. We enable direct economic exposure to leading companies, enhanced liquidity, and robust DeFi composability, all within a permissionless framework.
GM Markets, currently in public beta, is committed to expanding access to global equities on-chain for users around the world, excluding those in the United States and other restricted jurisdictions. We invite you to explore the GM Markets platform to learn more about our tokenized assets and discover the possibilities of integrating traditional market exposure with the advantages of decentralized finance.
