According to Coinbase, the Financial Services Regulatory Authority of Abu Dhabi Global Market has granted the company permission to arrange investment deals and provide custodial services for its new tokenized securities business.
This is the most important step towards creating the infrastructure for a more open and accessible global financial system, Coinbase stated.
Thanks to the new license, all securities issued by Coinbase will be backed by underlying shares and supervised by the Abu Dhabi regulator. At the same time, holders of tokenized assets will be able to store them in their digital wallets without opening a traditional brokerage account. However, Coinbase will verify all transfers for compliance with sanctions, and they may be blocked if necessary.
The American crypto exchange is entering the Abu Dhabi market, where other companies have already received permission to work with blockchain-based investment products. For example, in March, Ondo Finance received approval to tokenize U.S. stocks and exchange-traded funds within the ADGM framework. Coinbase has already begun offering tokenized securities in other countries: in June, the exchange launched tokenized shares of SpaceX, Nvidia, Google, Strategy, and Bitmine, which are backed on a 1:1 basis.
end-content
