Coinbase has secured Financial Services Permission from the Financial Services Regulatory Authority (FSRA) to establish its international tokenization hub within Abu Dhabi Global Market (ADGM), enabling the crypto exchange to arrange deals in investments and provide custody for tokenized securities.
Tokenized securities registered in ADGM are fully backed by underlying shares, with verified token holders retaining full shareholder rights including dividends and voting. Investors require only a digital wallet rather than a brokerage account or correspondent banking relationship, while all transfers remain subject to ongoing sanctions screening with Coinbase able to freeze or seize assets at the wallet level.
ADGM was among the first jurisdictions globally to issue a regulatory framework for virtual assets, having done so in 2018, and the hub is positioned to serve capital markets participants who lack access to traditional financial infrastructure – a cohort the exchange estimates at four billion people worldwide. The move reinforces Abu Dhabi's ambitions as a leading centre for blockchain-enabled financial services and the tokenization of real-world assets.
Gulf Economist Staff Writer