Coinbase Opens Abu Dhabi Tokenization Hub With FSRA Approval

Coinbase has secured Financial Services Permission from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to establish a regulated tokenization hub in Abu Dhabi, the company announced. The approval allows Coinbase to arrange investment deals and provide custody services for tokenized securities, creating an onchain capital markets base in the UAE designed to bring traditional financial assets onto blockchain networks.

"ADGM’s early virtual-asset rules and institutional approach made it a strong location for the project," said Brett Tejpaul, co-CEO of Coinbase Institutional.

The FSRA approval gives Coinbase a regulated foundation to operate an international tokenization hub that will issue and register digital securities within ADGM. Under the planned model, tokenized securities will be backed by the underlying shares and token holders can receive shareholder rights — including dividends and voting rights — subject to each security’s prospectus and any vesting conditions. The company emphasized that transfers will remain subject to ongoing sanctions screening and, where required by law, assets can be frozen or seized at the wallet level.

Coinbase framed tokenization as a mechanism to widen access to capital markets, pointing to its estimate that roughly 4 billion people worldwide currently lack easy access to traditional capital markets because of cost and limited financial services. By putting eligible securities directly onto blockchain networks and enabling holders to transact with digital wallets rather than through traditional brokerage systems, Coinbase aims to lower barriers to participation.

• Regulatory clearance: Financial Services Permission from FSRA (ADGM).
• Services allowed: arranging investment deals and custody services for tokenized securities.
• Investor rights: dividends and voting rights possible, subject to prospectus terms and vesting.
• Compliance: ongoing sanctions screening; wallet-level freezes/seizures where required by law.

Coinbase also noted that while investors do not need a brokerage or bank account merely to transact in digital securities, certain redemption rights may require a vested holder to have a suitable brokerage or bank account capable of receiving redemption proceeds. That distinction underscores the hybrid nature of tokenized stocks: native blockchain functionality alongside retention of traditional regulatory controls.

"This development strengthens Abu Dhabi’s position in blockchain-based financial infrastructure," said Arvind Ramamurthy, Chief Market Development Officer at ADGM, highlighting the emirate’s role in hosting regulated onchain market initiatives.

The Abu Dhabi hub forms one of two major businesses Coinbase is building outside the U.S.; the other is a global derivatives hub being developed through its broader UAE operations. The Abu Dhabi tokenization hub is intended not only as a regional office but as a core piece of Coinbase’s strategy to build onchain capital markets that can scale internationally under a regulated framework.

Looking ahead, the FSRA clearance positions Abu Dhabi as an important jurisdiction for regulated experimentation with tokenized securities. Market participants will be watching how Coinbase implements custody, compliance and shareholder rights onchain, and whether the model can materially expand investor access while satisfying regulators’ demands for control over sanctions, freezes and redemption processes.