Coinbase Receives Approval for Tokenization Hub in Abu Dhabi

Coinbase has received Financial Services Permission from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi, allowing the company to set up an international tokenization hub within the Abu Dhabi Global Market (ADGM). This regulatory clearance enables Coinbase to arrange investment deals and provide custody services, representing a major step in its efforts to build regulated blockchain-based capital markets outside the United States.

The tokenized securities will be registered and issued in ADGM and fully backed by the underlying shares under FSRA supervision. Eligible token holders will gain shareholder rights, including voting and economic benefits such as dividends, subject to conditions outlined in the relevant prospectus. Coinbase aims to combine the legal protections of traditional securities with the accessibility of blockchain-based assets, potentially lowering barriers to entry in global capital markets.

Investors will only need a wallet to participate, avoiding the necessity of establishing a traditional brokerage account. Coinbase has also stated that all transfers will undergo ongoing sanctions screening, with mechanisms in place to freeze or seize assets at the wallet level when required by regulators.

This tokenization hub is part of a broader investment strategy in the UAE, which includes plans for a Dubai-based global derivatives hub. Coinbase's initiatives underscore its belief that the UAE is well-positioned to become a key base for next-generation financial infrastructure.