Bitwise is rolling out a new way for international crypto investors to own tokenized U.S. stocks without giving up custody. What launched - On Aug. 25 Bitwise announced three Automated Token Portfolios (ATPs) built around Coinbase’s tokenized U.S. stocks. The ATPs let eligible non-U.S. investors copy Bitwise’s rules-based stock models while keeping tokens in their own wallets. - Bitwise charges a 0.15% methodology access fee. That fee excludes trading costs and any separate platform charges levied by the execution partner, Glider. How it works - ATPs publish target allocations rather than pooling investor capital. After a user authorizes a session, Glider—an independent onchain execution and rebalance platform—buys, sells and rebalances the tokenized shares in the user’s non-custodial wallet to match Bitwise’s stated weights. - Bitwise designs the models and sets the rules, but it does not custody assets, execute trades itself, or exercise discretion over individual accounts. Investors retain direct ownership of the tokens. - Bitwise stressed that selecting an ATP does not create an advisory, fiduciary or contractual relationship with the manager. The portfolios - Bitwise Mag7X ATP: equal weight in Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, Tesla, plus private company SpaceX. - Bitwise Robotics ATP: equal-weight positions in companies tied to robotics and autonomous systems, including Tesla, Nvidia and Amazon. - Bitwise AI Leaders ATP: exposure to firms Bitwise identifies as AI leaders—Nvidia, Microsoft, Alphabet, Meta, Amazon, SpaceX, Tesla and Sandisk. Token mechanics and issuer details - Coinbase’s stock tokens run on Base and are issued under an ADGM-registered SPV, Coinbase Onchain SPV Ltd. Each token represents a beneficial interest in an underlying share held in segregated custody; Alpaca Securities (a U.S. broker-dealer and FINRA/SIPC member) is listed as the party that buys, sells and holds those underlying shares. - Prospectuses state the tokens are backed one-to-one and carry shareholder rights subject to eligibility, timing and operational limits. Bitwise said it has not independently verified Coinbase’s statements on backing, redemption terms or shareholder rights. - Certain verified tokenholders can submit voting instructions to the issuer, but voting and distributions are subject to legal and operational limits. The issuer charges a distribution fee equal to 5% of gross payments before withholding and reinvestment, and U.S. withholding on dividends for non-U.S. holders is generally 30% unless reduced by treaty. Access and regulatory limits - The ATPs and the Coinbase stock tokens are available only to eligible non-U.S. persons in supported jurisdictions, defined by reference to Regulation S under the Securities Act of 1933. The products have not been registered for sale to U.S. persons. - Bitwise’s U.S. investment adviser registration covers a separate advisory business and does not imply SEC review or endorsement of the ATPs. - Coinbase’s prospectuses likewise note the securities are not registered under U.S. securities laws. Risks and onchain opportunities - Because tokens remain in compatible self-custodial wallets, holders could potentially use them as collateral or deploy them in decentralized finance protocols. Bitwise warned lending or borrowing against tokenized stock carries extra risks, including possible full liquidation. - The arrangement gives international users institutional portfolio models delivered onchain while keeping asset control in the investor’s hands—“For over a century, getting a professional model meant handing your assets to a fund. ATPs mean you can keep the assets in your own wallet, and the model comes to you,” Bitwise CIO Matt Hougan said. - Glider CEO Brian Huang framed the launch as giving global users onchain access to institutional managers: “Finally, we have global access to the same institutional managers we respect in traditional finance, but now in digital assets.” Context and competition - Coinbase’s initial public rollout of stock tokens covered Apple, Nvidia, Meta and Alphabet under the B20 token standard. Coinbase’s ADGM SPV and Alpaca arrangement are intended to underpin the tokens, but the structure and investor rights remain subject to the issuer’s prospectuses and legal limits. - The product contrasts with Dinari’s August U.S. rollout, which made tokenized S&P 500 exposure available to eligible American users under a different model. Regulatory treatment of tokenized stocks in the U.S. is still evolving; reports in June said the SEC was considering limited exemptions for test programs, but no exemption applies to these Bitwise ATPs. Bitwise’s broader 2026 push - The ATP launch follows several onchain initiatives from Bitwise this year, including a January non-custodial USDC Morpho vault, expanded model-portfolio services for financial advisers in February, retail model access via Parrot in the summer, and an August partnership with Superstate to explore recording ownership of selected Bitwise fund shares on-chain. Bottom line Bitwise’s ATPs offer a novel hybrid: professional, rule-based stock models plus self-custody and onchain rebalancing. The approach may appeal to non-U.S. crypto investors seeking institutional-style allocations without handing over assets to a manager—though legal limits, issuer disclosures, fees and DeFi risks remain important considerations. Read more AI-generated news on: undefined/news