Author:Coinbase Blog
Compiled by:Deep Tide TechFlow
Deep Tide Insight: Coinbase has obtained a financial services license in Abu Dhabi, preparing to move traditional assets like stocks onto the blockchain. This means that the 4 billion people globally who are excluded from traditional capital markets could, in the future, participate in investment with just a wallet. For professionals eyeing the real-world asset tokenization track, this is a significant signal of a regulatory framework coming into effect. It may subsequently trigger a wave of competition among exchanges to secure a compliant foothold in the Middle East.
Coinbase Establishes Tokenization Hub in Abu Dhabi, Secures License from the Financial Services Regulatory Authority
Coinbase has obtained a Financial Services Permission from the Financial Services Regulatory Authority to establish its International Tokenization Hub at Abu Dhabi Global Market. Abu Dhabi Global Market is the international financial center of Abu Dhabi, the capital of the UAE. This is one of the most significant steps we have taken to date in building a more open and accessible global financial system.
Coinbase has been granted a license by the Financial Services Regulatory Authority of Abu Dhabi Global Market, allowing it to undertake investment arranging activities and provide custodial services to facilitate our launch of tokenized securities. This forms the foundation for us to establish our International Tokenization Hub in Abu Dhabi.
Why this matters: 4 billion people globally lack access to capital markets. Not because they lack funds, but because the system was never built for them. Investable opportunities are out of reach, and the cost of participation is too high. This license is our first step in changing that reality.
Tokenized securities registered and issued on Abu Dhabi Global Market are fully backed by underlying shares and supervised by the Financial Services Regulatory Authority. Verified token holders enjoy full shareholder rights, including dividends and voting rights.
Investors do not need a securities account or a broker relationship; they only need a wallet. Every transfer undergoes continuous sanctions screening, and we can freeze or seize assets at the wallet level when necessary, proving that DeFi and regulatory compliance are not in conflict.
Brett Tejpaul, Co-Head of Coinbase Institutional, stated: "Abu Dhabi Global Market released one of the world's first virtual asset regulatory frameworks in 2018. This demonstrates a genuine institutional commitment to innovation-first regulation, executed with the rigor required by global financial markets. No other major financial center has established such a framework that recognizes tokenized stocks simultaneously as securities, blockchain-native tokens, and composable assets for DeFi."
Arvind Ramamurthy, Chief Market Development Officer of Abu Dhabi Global Market, stated: "Coinbase's establishment of its International Tokenization Hub at Abu Dhabi Global Market is a powerful testament to Abu Dhabi's growing role in shaping the future of global finance. It reflects the strength of ADGM's progressive, robust, and internationally aligned regulatory framework, which consistently provides confidence to leading global institutions to develop responsible, blockchain-based financial services at scale. As tokenization becomes an increasingly integral part of capital markets infrastructure, ADGM remains committed to supporting innovations that enhance market access, transparency, and investor confidence, while adhering to the highest standards of regulatory oversight."
This launch is part of our broader commitment to the UAE. Through our investments in both Abu Dhabi and Dubai, Coinbase is building two of its most ambitious global businesses outside the US: a hub for tokenized securities and on-chain capital markets, and a global derivatives hub. Together, they reflect our confidence in the UAE as a home for next-generation financial infrastructure.
The Financial Services Permission from FSRA provides us with the regulatory foundation, infrastructure, and right partners to bring capital markets within reach of the people who need them most. The next frontier of global finance is on-chain. We are building it.
1 Digital Securities are subject to certain vesting conditions, as defined in the offering document for the Digital Securities. Only Vested Holders may exercise certain rights, including voting rights on the underlying asset. Dividends are automatically reinvested. All holders may derive economic benefit from this feature of the Digital Security, but only Vested Holders are eligible for redemption rights.
2 To exercise certain rights of the Digital Securities, namely redemption rights, Vested Holders must have an applicable securities or bank account to be able to receive redemption proceeds. However, trading in the Digital Securities alone does not require opening such a securities or bank account.
