Coinbase Eyes Tokenized Stock & Perpetuals

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Good Morning.

The crypto markets continue to be at the mercy of geopolitical tension in the middle east as all eyes are on the region. Whether or not the fight will escalate remains the key macro decision-maker for the foreseeable future.

In Today's Email:

• What Matters: Coinbase Eyes Tokenized Stock Trading 👀 

• Case Study: MEV Bots vs Blockchain Scalability 🔎 

• Governance & Features: Byreal Goes Live 🚀 

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WHAT MATTERS

Coinbase Eyes Tokenized Stock Trading

State of play: Coinbase is seeking regulatory approval from the SEC to offer tokenized stocks to US customers, aiming to compete with platforms like Robinhood and Charles Schwab.

• Chief Legal Officer Paul Grewal confirmed the exchange is pursuing either a no-action letter or exemptive relief to move forward.

• If granted, Coinbase would enable blockchain-based trading of traditional equities with faster settlement, 24/7 trading, and reduced costs.

• The initiative reflects Coinbase's broader strategy to expand beyond crypto, following recent moves like partnerships with Shopify and Stripe.

• Coinbase had earlier attempted to tokenize its own COIN shares during its 2021 IPO process but failed to gain SEC approval.

Why it matters: While Kraken is already launching tokenized stocks outside the US, such assets remain inaccessible to American investors due to regulatory constraints.

Our take: Coinbase, Robinhood, and other onshore US players are aggressively capitalizing on the Trump’s administration friendly stance towards crypto — pushing for the trading of tokenized stocks and perpetual products will generate them significant revenue sources, and making them competitive against the offshore CEXs.

For builders and investors: Given how overvalued CRCL right now it might be a decent bet to long Coinbase (NFA).

CASE STUDY

How MEV Bots Are Undermining Blockchain Scalability

Flashbots reports that MEV bots are now the primary obstacle to scaling blockchains.

• These bots flood networks with speculative arbitrage txs, consuming 50%+ of gas on major rollups and ~40% of blockspace on Solana.

• Meanwhile, those bots are paying less than 10% of total fees.

• On Base, just two bots generated 80% of spam traffic, absorbing nearly all of the 11M gas-per-second throughput added between Nov 2024 and Feb 2025.

• Flashbots argues this shows the problem is economic congestion, not technical capacity.

Their proposed solution is to replace gas-based competition with a two-part system: programmable privacy for MEV searchers and a separate off-chain auction for transaction ordering.

• This would reduce spam, improve fee efficiency, and open up capacity for real users and applications.

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INSIGHTS

What is BL4NK?

A mysterious project called BL4NK is making waves across crypto Twitter. The site itself teases visitors with a simple prompt: "What is it?" and invites the public to submit guesses ahead of an upcoming reveal.

While details remain scarce, the buzz around the project suggests something experimental or community-driven. Speculation ranges from an on-chain art drop to a new protocol or social experiment.

FEATURES & GOVERNANCE UPDATE

Byreal Goes Live

Byreal, a new onchain liquidity network incubated by Bybit and built on Solana, has officially launched. Aiming to merge CEX liquidity with DEX transparency, Byreal offers a hybrid model featuring:

• CLMM + RFQ hybrid routing for optimized trading

• Reset Launch, a fair launchpad with Smart Price Ladder and Fairshare Engine

• Revive Vault, a curated yield platform starting with bbSOL

Byreal is designed to support new users, assets, and capital flow on Solana. Testnet goes live June 30, with mainnet expected in Q3 2025.

Other notable feature updates:

• RuneShot is now live.

• Syntor Mainnet is now live.

• FDUSD is now live on Arbitrum.

• Lido Finance joined Balancer Alliance.

• Jupiter is now integrated with Meteora.

• Morpho will use only the $MORPHO token.

• Curve is now integrated with and live on Hyperliquid.

• Aerodrome will be integrated into the main Coinbase App.

• Morpho has launched V2 and introduced an intent-driven mechanism.

QUICK BITES

• DTCC lists VanEck’s proposed spot SOL ETF.

• Bitcoin ETFs log $1.8B over six-day inflow streak.

• Avalanche tx top 1M amid ERC-404 minting frenzy.

• Antalpha posts 423% YoY net income growth in Q1.

• Coinbase seeks SEC greenlight for tokenized stocks.

• Senate passes stablecoin bill, turning focus to House.

• a16z crypto invests $70M in direct EigenLayer token deal.

• TRM Labs says 99% of stablecoin activity in 2024 was 'licit'.

• JD plans to apply for stablecoin licenses in major global markets.

• China’s Central Bank unveils e-CNY center to boost global reach.

• Ethereum surpasses 35M ETH staked, a new high for the network.

• PumpFun’s accounts banned on X alongside other memecoin services.

• China's central bank cites stablecoins' impact on cross-border payments.

• JPMorgan to launch 'deposit token' JPMD on Base in pilot involving Coinbase.

NOTEWORTHY READS & MEME

• Meow’s read on web4: social monies.

• Dio Casares’ read on DeFi derivatives.

• Dino’s read on attention vs social capital markets.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.