The cryptocurrency exchange Coinbase is actively seeking approval from the U.S. Securities and Exchange Commission (SEC) to introduce a pioneering 'tokenized stock' service. Tokenized stocks entail the transformation of traditional listed company equities into digital assets, allowing investors to hold tokens that symbolize ownership of securities, rather than physically possessing the securities themselves. Paul Grewal, Coinbase's Chief Legal Officer, emphasized that, as a newly inducted member of the S&P 500 Index, the company requires an 'No-Action Letter' or exemption from the SEC to move forward with this innovative venture. Should the approval be granted, Coinbase will leverage blockchain technology to offer stock trading services, positioning itself as a competitor to internet brokerages such as Robinhood and Charles Schwab. Notably, while the provision of tokenized stock services is currently prohibited within the United States, Coinbase's rival Kraken is already offering such services to clients outside the U.S.