Coinbase plans to introduce tokenized versions of US company stocks, joining a growing race among crypto exchanges and financial firms to move equities onto blockchain networks.

The company said the products will be backed one for one by underlying US shares, allowing users to own, trade, hold, and redeem the securities onchain while automatically receiving dividends.

“The first real, 1:1 backed tokenized stocks are coming,” Coinbase said in a post on X. CEO Brian Armstrong said the products are designed to give users actual ownership onchain rather than synthetic exposure, derivatives, or IOUs.

The products will initially be available only in eligible jurisdictions outside the US. Coinbase did not provide a launch date, saying only that the offering is coming soon.

The announcement comes ahead of a Coinbase product event scheduled for Tuesday afternoon, where the company is expected to unveil a broader slate of trading and financial services products.

Tokenized stocks have become one of the fastest growing areas of digital asset markets. Supporters argue that blockchain based securities can reduce settlement times, lower costs, support fractional ownership, and allow trading outside standard market hours.

The products also fit Coinbase’s broader everything exchange strategy. The company has been expanding beyond spot crypto trading into equities, derivatives, payments, and tokenized financial products as it tries to become a broader financial platform.

Competition is intensifying. Kraken recently added tokenized US stocks for customers in more than 180 countries through its xStocks platform, while Robinhood has announced plans to offer tokenized equities in Europe. Gemini, Bybit, and other exchanges have also explored similar products.

Traditional finance is moving in the same direction. BlackRock, Franklin Templeton, JPMorgan, and Citi have all expanded or studied tokenized asset offerings, with banks projecting that tokenized securities could become a multitrillion dollar market by the end of the decade.

The key question for Coinbase is how closely the tokens behave like the shares they represent. The company is emphasizing one for one backing, redemption, and dividend rights as the features meant to separate its product from synthetic tokenized stock exposure.

The US remains off limits for now. Coinbase has previously sought regulatory approval to offer tokenized equities domestically, but securities rules around blockchain based stocks remain unsettled.