Coinbase announced on Tuesday that it has secured regulatory approval to establish an international tokenization hub in Abu Dhabi, expanding its push into blockchain-based capital markets in the United Arab Emirates.
The crypto exchange said in a blog post that it received Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market, or ADGM, allowing it to arrange investment deals and provide custody services connected to tokenized securities.
The license will serve as the regulatory foundation for Coinbase’s planned tokenization business in the financial center, which the company described as one of its most significant steps toward moving traditional capital-market infrastructure on-chain.
ADGM license clears path for tokenized securities
Coinbase said securities issued and registered through the ADGM framework will be backed by underlying shares and operate under FSRA supervision, with eligible holders able to receive economic and shareholder-related rights.
The company said investors can hold and transfer the digital securities through crypto wallets rather than needing a conventional brokerage relationship for transactions involving the tokens themselves. However, exercising some redemption rights may still require an eligible brokerage or bank account.
Transfers will also remain subject to sanctions screening, while assets may be frozen or seized at the wallet level where legally required, Coinbase said.
Brett Tejpaul, co-CEO of Coinbase Institutional, said Abu Dhabi had established an early regulatory framework for virtual assets and argued that ADGM was creating conditions for tokenized equities to function both as regulated securities and blockchain-native assets.
Coinbase deepens its UAE footprint with Abu Dhabi tokenization hub
Coinbase has been steadily building its presence in the UAE for several years. In 2023, the company identified the country as a potential strategic hub and began working with Abu Dhabi Global Market regulators as it explored expanding its international operations, while Coinbase Asset Management also entered a collaboration with ADGM.
Its UAE footprint widened further through Deribit, the crypto derivatives platform acquired by Coinbase, which operates a regulated business from Dubai.
The Abu Dhabi launch now adds a new layer to that strategy, giving Coinbase a regulated base for tokenized securities and on-chain capital markets. The company said its businesses in Abu Dhabi and Dubai rank among its most ambitious international initiatives outside the United States.
