Coinbase wins Abu Dhabi approval to establish international tokenization hub in ADGM

Coinbase has received Financial Services Permission from Abu Dhabi Global Market’s Financial Services Regulatory Authority, giving the company regulatory clearance to establish an international tokenization hub in Abu Dhabi.

The approval permits the company to arrange investment deals and provide custody services, marking a major step in the company’s effort to build regulated blockchain-based capital markets outside the US.

The tokenized securities will be registered and issued in ADGM and fully backed by the underlying shares under FSRA supervision. Eligible token holders will receive shareholder rights, including voting and economic benefits such as dividends, subject to the vesting and other conditions set out in the relevant prospectus.

Coinbase said the structure is designed to combine the legal protection of traditional securities with the accessibility and composability of blockchain-based assets.

According to the company, the model could reduce barriers to participation in global capital markets. Rather than requiring investors to establish a traditional brokerage account or correspondent banking relationship for transactions limited to digital securities, the basic requirement is a wallet.

At the same time, Coinbase said every transfer will undergo ongoing sanctions screening, with mechanisms available to freeze or seize assets at the wallet level when required by regulators.

Coinbase’s tokenization hub is part of a wider investment push in the UAE, spanning both Abu Dhabi and Dubai.

Alongside an Abu Dhabi hub focused on tokenized securities and onchain capital markets, Coinbase plans to develop a Dubai-based global derivatives hub. The company said the investments underscore its belief that the UAE is well positioned to become a key base for next-generation financial infrastructure.