Coinbase is taking its tokenization plans beyond the U.S. after securing regulatory approval in Abu Dhabi. The crypto exchange has received Financial Services Permission from the FSRA, allowing it to build a new hub for tokenized securities and onchain capital markets in the UAE.
Coinbase Gets FSRA Approval for Tokenized Securities
Coinbase has received Financial Services Permission from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The approval allows Coinbase to arrange investment deals and provide custody services for its planned tokenized securities business.
The move gives Coinbase a regulated base for its international tokenization hub in Abu Dhabi.
The company says the hub will focus on bringing traditional financial assets onto blockchain networks. Instead of relying entirely on traditional brokerage systems, investors will be able to use digital wallets to access and transfer eligible tokenized securities.
This is important because Coinbase sees tokenization as a way to make capital markets easier to access for people around the world.
Why Coinbase Chose Abu Dhabi for Its Tokenization Hub
Coinbase’s Abu Dhabi move is more than a new regional office. The company wants the hub to become part of its wider plan to build onchain capital markets.
Coinbase said around 4 billion people worldwide cannot easily access capital markets because of high costs and limited access to traditional financial services.
Tokenization could reduce some of these barriers by putting financial assets directly on blockchain networks.
Under the planned structure, digital securities issued and registered through ADGM will be backed by the underlying shares. The company also said token holders can receive shareholder rights, including dividends and voting rights, subject to the conditions set out in each security’s prospectus.
However, some rights are linked to vesting conditions. For example, only vested holders may be able to exercise certain voting and redemption rights.
Tokenized Stocks Will Still Follow Regulation
Coinbase’s model does not mean tokenized securities will operate like unrestricted crypto tokens. The company said transfers will remain subject to ongoing sanctions screening. Where required by law, assets can also be frozen or seized at the wallet level.
This approach is designed to bring traditional securities onto blockchain networks while keeping them within a regulated framework.
Coinbase also clarified that investors do not need a brokerage or bank account simply to transact in the digital securities. However, certain redemption rights may require a vested holder to have a suitable brokerage or bank account capable of receiving the redemption proceeds.
This distinction could become important as tokenized stocks move closer to mainstream financial markets.
UAE Becomes Key Part of Coinbase’s Global Strategy
The Abu Dhabi hub is also part of a much bigger Coinbase push in the UAE.
The company said it is building two major businesses outside the U.S. One is the Abu Dhabi-based hub for tokenized securities and onchain capital markets. The other is a global derivatives hub being developed through its broader UAE operations.
Brett Tejpaul, co-CEO of Coinbase Institutional, said ADGM’s early virtual-asset rules and institutional approach made it a strong location for the project.
ADGM Chief Market Development Officer Arvind Ramamurthy also said the development strengthens Abu Dhabi’s position in blockchain-based financial infrastructure.
Was this writing helpful?
Story Ends Here
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Read the Next News
