Introduction
Rarely do a regulatory narrative, tangible technological advancement, and a sustained bullish market coincide in the markets. This unique convergence is what has propelled Coinbase and Robinhood into the spotlight, platforms dedicated to crypto asset trading and retail stock brokerage, respectively. Their stocks have surged amid growing signals that the United States might enter a new phase of structural coexistence with the crypto ecosystem.
The USDC and Tokenization of Traditional Financial Assets
At the heart of this story lies the USDC, a stablecoin backed by dollar-denominated assets that maintains its value pegged to the US dollar. The emergence of tokenizing traditional financial assets as a new market infrastructure has also played a crucial role.
The recent authorization to use USDC as collateral in derivatives operations marked a turning point. This move enables institutions to incorporate stablecoins into complex products without violating existing regulations, provided they are properly custodied.
Regulatory Clarity and Digital Trust Companies
The pressure to provide regulatory clarity to the crypto sector has fueled requests for digital trust charters from entities like Circle, Ripple, and Fidelity, all anticipating the approval of the GENIUS Act, which would federally regulate stablecoins.
Coinbase’s Strategic Move
Coinbase has capitalized on this moment with a strategic acquisition: Liquifi, a platform specializing in token issuance, distribution, and regulatory compliance. This purchase positions Coinbase as the first US exchange capable of offering an end-to-end solution for startups looking to legally issue tokenized assets.
This represents a new revenue stream: participation from token inception rather than just secondary exchange.
Robinhood’s Tokenization Push
Robinhood has ventured into tokenizing private equity stocks. Through special purpose vehicles (SPVs), the platform issued tokens representing companies like OpenAI and SpaceX for its European clients. Although these instruments don’t grant voting rights or legally represent shares, they do offer economic exposure to their performance.
The response was immediate: Robinhood reached its twelfth record closing in the past month.
Controversy and Debate
However, not all has been smooth sailing. OpenAI reacted negatively, clarifying that it hadn’t authorized any stock transfer and warning against using its name. This controversy reignited the debate on whether tokens genuinely represent underlying rights and if their proliferation democratizes private capital access or merely constitutes a new form of financial engineering.
A More Open US Administration Towards Digital Assets
Underlying both cases is a more open US administration towards digital assets. The Trump administration blocked new restrictive tax initiatives for the sector and allowed a more flexible interpretation by the SEC.
Its then-chairman, Paul Atkins, hailed tokenization as “an innovation that should be encouraged, not stifled.” This new attitude has paved the way for traditional institutions to explore hybrid products like tokenized ETFs or stablecoin-backed loans.
Capital Inflows and Risks
In the short term, this has generated significant capital inflows into crypto companies. Coinbase has seen a 109.78% rise over the last three months, while Robinhood has surged 147.38% in the same period.
Since the year began, their stocks have gained 38% and 139%, respectively, outpacing bitcoin’s advance, which is nearing historical highs with a 16% increase in 2025.
However, enthusiasm should not overshadow risks. The 2017 ICO boom—allowing capital raising without regulation—ended with the SEC intervening due to numerous frauds. Later, Terra/Luna’s algorithmic stablecoin lost its parity within days, and FTX, one of the world’s largest exchanges, imploded amidst allegations of massive fraud and fund misappropriation.
These events underscore the need for cautious evaluation, even amidst the current seemingly more institutional narrative with clearer rules.
Fundamental Challenges and Sustainability
From a fundamental perspective, the challenge isn’t just innovation but sustainability. Structures of collateralization with volatile assets, the legal opacity of many tokens, and the rapid adoption by retail investors present asymmetries that could be problematic without consistent regulatory frameworks.
The growth of Coinbase and Robinhood isn’t just speculation but a transformation in capital access and investment mechanisms.
What once seemed exclusive to the decentralized world—like token launches, fractional rights, or 24/7 liquidity—is now being absorbed by more traditional platforms.
And all signs suggest that this convergence is only just beginning.
Key Questions and Answers
- What is the significance of Coinbase’s acquisition of Liquifi? This strategic move positions Coinbase as the first US exchange capable of offering an end-to-end solution for startups looking to legally issue tokenized assets, representing a new revenue stream.
- How has Robinhood contributed to tokenization? Robinhood has ventured into tokenizing private equity stocks through special purpose vehicles, offering economic exposure to companies’ performance without granting voting rights.
- What is the regulatory stance of the US administration towards digital assets? The US administration, under Trump, has been more open to digital assets, blocking restrictive tax initiatives and allowing a more flexible SEC interpretation. This has encouraged traditional institutions to explore hybrid products like tokenized ETFs or stablecoin-backed loans.
- What risks are associated with the growing capital inflows into crypto companies? Despite enthusiasm, risks remain. Past events like the 2017 ICO boom, Terra/Luna’s collapse, and FTX’s implosion underscore the need for cautious evaluation, even amidst seemingly clearer regulations.
