Coinbase Tokenized Stocks vs. Edel Finance vs. Ondo: Here’s Why Analysts Are Picking $EDEL

Coinbase confirmed it will roll out tokenized stock trading on its platform as part of its broader push to become the “everything app.”

The announcement from the leading U.S. cryptocurrency exchange is expected to have a massive impact on the equities tokenization market, which research reports from several organizations suggest could grow into a multi-trillion-dollar industry in the coming years.

While Coinbase’s tokenized stocks initiative is likely to have a considerable impact on the company’s own financial position, it is also widely expected to drive increased interest in cryptocurrency projects operating within the tokenization sector.

Ondo Finance ($ONDO) has long played a central role in the tokenization market, offering several products and services that have successfully brought legacy financial instruments on-chain.

However, $ONDO may not be the best crypto to buy for traders looking to benefit from a tokenization-driven bull run. Instead, many analysts have highlighted Edel Finance ($EDEL) as a stronger pick due to its lending and borrowing technology, which is currently live in a testnet environment.

Coinbase Tokenized Stocks Announcement Could Ignite Tokenization Rally

The Coinbase application will offer hundreds of top stocks at launch, with plans to add thousands of additional stocks and exchange-traded funds (ETFs) in the coming months.

Coinbase’s Head of Consumer and Business Products, Max Branzburg, told CoinDesk that while the exact stock listings have yet to be confirmed, the initial offering is expected to focus on equities with the largest market capitalizations and trading volumes. Alongside tokenized stocks, Coinbase is also expanding into prediction markets, aiming to compete directly with platforms such as Polymarket.

Strategically, Coinbase is positioning itself as the primary distribution and onboarding layer for tokenized equities. With more than 100 million users, the exchange has the scale to accelerate mainstream adoption and attract significant new capital inflows into the tokenization sector.

Despite the announcement, Coinbase ($COIN) stock traded slightly lower in the days that followed. This reaction may reflect broader bearish sentiment across global equity markets, particularly within the technology sector, rather than concerns specific to tokenization.

Over the longer term, Coinbase’s move into tokenized stocks is widely expected to drive adoption of this new approach to equity trading. As access expands, infrastructure-focused projects such as Edel Finance ($EDEL) and Ondo Finance ($ONDO) stand to benefit from increased demand across the tokenization ecosystem.

Edel Finance: Lending and Borrowing Stocks Unlocked

The Coinbase news has given the already bullish tokenization narrative in the crypto market additional momentum. Several projects are now focused on building tools that extend utility beyond simply buying and holding tokenized stocks, with lending and borrowing emerging as a critical next step.

“Tokenized equities need the same financial infrastructure that exists in traditional markets to function properly,” said Andrés Soltermann, CEO of Edel Finance. “Our mission is to bring securities lending on-chain in a way that is transparent, efficient, and accessible, allowing tokenized stocks to become productive financial assets rather than passive instruments.”

At a practical level, the Edel Finance ecosystem supports several core use cases:

• Lending: Equity holders can lend tokenized stocks to earn yield.
• Borrowing: Traders can borrow stocks to gain exposure or open short positions.
• Collateralization: Users can unlock liquidity by borrowing against equity holdings.
• Yield generation: Lending activity enables returns that are typically captured by intermediaries.

“This week, the Edel Finance testnet went live, allowing users to experience first-hand how on-chain stock lending and borrowing work. The testnet demonstrates how the protocol functions in real conditions and highlights the value of building securities lending infrastructure specifically for tokenized equities,” added Andrés.

$EDEL vs. $ONDO: Why Analysts Prefer Edel

The testnet launch has helped Edel Finance build its profile in the tokenization market, but $ONDO arguably remains the most well-known token in the sector. Ondo Finance has been a leading player in the tokenization narrative throughout 2025, with its tokenized U.S. Treasury product proving highly successful and giving the project an early mover advantage.

Ondo’s core strength lies in asset issuance and institutional-facing products. The project has focused on bringing traditional financial instruments on-chain in a compliant structure, attracting interest from large financial institutions and positioning itself as a bridge between traditional finance and blockchain infrastructure.

Despite these positives, $ONDO has had a difficult year in the market. The token has shed roughly 80% of its value over recent months and has posted additional double-digit losses. With a market capitalization of around $1.2 billion, significant capital inflows would be required to materially shift its price.

By contrast, analysts note that on-chain data combined with Edel’s recent testnet progress has positioned $EDEL as a more attractive option for traders seeking exposure to a potential tokenization-driven bull run.

ONDO price chart. Source: CoinMarketCap

Final Thoughts

The Coinbase tokenized stocks addition to its “everything app” has the potential to bring the tokenization of equities one step closer to mainstream adoption. The advantages of trading stocks on-chain are clear, offering improved security, liquidity, and accessibility.

Another outcome of the announcement is the potential for increased demand for tokenization-focused cryptocurrencies, with $EDEL’s lending and borrowing solution arguably positioning it well to benefit from growing demand for on-chain stocks and ETFs.

FAQs

How does Coinbase’s tokenized stocks announcement impact the broader tokenization market?

Coinbase’s announcement reinforces tokenized equities as a mainstream financial trend. When a major exchange commits to tokenization, it increases visibility, credibility, and user access, potentially accelerating adoption across related infrastructure and issuance projects.

Why are analysts comparing Edel Finance to DeFi lending protocols like Aave?

Fdel Finance is compared to DeFi lending protocols because it enables lending, borrowing, and collateralization, but for tokenized equities rather than cryptocurrencies, extending proven DeFi mechanics into traditional stock markets.

What role does Ondo Finance play in the tokenized equities ecosystem?

Ondo Finance focuses on compliant asset issuance and institutional-grade tokenized products, particularly Treasuries and planned ETFs, serving as an important bridge between traditional finance and on-chain asset markets.

Which type of crypto project benefits most from tokenized stocks adoption?

Infrastructure-focused projects that enable lending, borrowing, settlement, and capital efficiency tend to benefit most, as increased access to tokenized equities creates demand for deeper financial functionality beyond simple trading.

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