Financial service companies Robinhood (NASDAQ: HOOD) and Coinbase (COIN 2.58%) haven't competed much head-to-head, but that's changing. Both companies have announced plans to tokenize the stock market, meaning they want to turn real-world assets into digital tokens on a blockchain.
What that might look like: 24/7 stock trading, global expansions, private company access, and more -- if you buy the hype. Robinhood has already rolled out tokenized stocks in the EU, so this is more than a wish list. It's already happening, and Coinbase may not be far behind.
What's at stake: market share. Individual and institutional investors are up for grabs. In theory, customers will love the benefits of tokenized stocks so much that competitors will be forced to fall in line.
There are multiple players in the space. Two of the biggest are Coinbase and Robinhood.
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Robinhood has tokenized stocks in the EU
Robinhood made its name as a stock trading app with zero commission fees. In June 2025, Robinhood CEO Vlad Tenev made a splashy announcement during its To Catch a Token event, unveiling a three-part plan designed to seamlessly integrate tokenization into the app. The idea is to make the tokenization invisible so users will not notice a difference in their trading experience, while enabling features like faster settlement and more flexible trading hours.
Robinhood has already rolled out Part One, with its tokenized stock trading in the EU. Investors can buy tokens that represent individual stock shares of over 200 U.S. companies. These can be traded 24/5, with a 0.1% foreign exchange (FX) fee applied per transaction. It's tangible proof that the company is executing on its ambitious roadmap, one that doesn't end with stock trading.
Part Two will expand trading hours to a full 24/7 schedule, made possible by Robinhood’s acquisition of Bitstamp, a long-standing global cryptocurrency exchange. Part Three is activating a custom blockchain called the Robinhood Chain, which will allow users to store and trade assets like stocks off-platform. The plan is to extend this perk to other assets like bonds and private stocks.
What Robinhood lacks are rock-solid institutional crypto partnerships. Competitor Coinbase has partnered with major players like Circle, the second-biggest stablecoin issuer, and Blackrock, the world's largest investment firm. Bottom line, huge and influential companies trust Coinbase to do crypto. Robinhood lacks Coinbase's reputation as a crypto safe haven.
Coinbase is building an everything app on Base
Coinbase is maybe the biggest crypto company in the U.S., with a market capitalization of $76 billion as of writing. Users trade and stake crypto through the app. In July 2025, Max Branzburg, vice president of product at Coinbase, told CNBC the company is building an "everything exchange" that will include features like tokenized real-world assets, stocks, derivatives, and prediction markets, all planned for rollout this year.
Coinbase has already built the foundations to make this happen. Its technology is built upon Base, an extremely popular Layer Two blockchain used by reputable companies like JPMorgan to launch tokens. Though it lacks tokenized stock trading as of writing, Base is a functional, popular app available to U.S. users.
Like Robinhood, Coinbase has a master plan, but it takes a different track. The company wants to transform the Base app into a popular "super app" that enables users to manage all of their financial needs in one place, similar to Asia's WeChat, which combines messaging, payments, shopping, and investing in a single application. It's an ambitious vision.
What Coinbase lacks is a mainstream stock trading app. Competitor Robinhood is laser-focused on investing, and its userbase reflects that. It already has the users, the traction, and a product that lets you trade tokenized stocks. Coinbase has a vision and a history of successfully capturing cryptocurrency enthusiasts. But can it capture the wallet of your average investor?
Robinhood has everything it needs, including stock traders
I think both companies have bright futures. Coinbase seems well-positioned to leverage partnerships for institutional stock trading. Robinhood already has the tools and the audience it needs to tokenize stocks successfully. There's room for both companies to take market share.
If I had to choose one, I'd pick Robinhood. The roadmap is clear, the fundamentals sound -- the users are there. I'm less certain Coinbase can translate ambitions into a mainstream product. Robinhood is already the better interface for retail investors -- and arguably, for Bitcoin and Ethereum investors. I'd be surprised if that changed over the next five years.
