Coinbase has received Financial Services Permission (FSP) from the FSRA to establish its international tokenization hub in ADGM, the international financial centre of Abu Dhabi, the Capital of the United Arab Emirates (UAE). This allows Coinbase to arrange deals in investments and provide custody in order to facilitate its launch of tokenized securities.
The reason this matters: 4 billion people worldwide cannot access capital markets. Not because they lack the means, but because the system was never built for them. Investable opportunities are out of reach, and the cost of participation is too high.
The tokenized securities registered and issued in ADGM are fully backed by underlying shares under the supervision of the FSRA and verified token holders receiving full shareholder rights, including dividends and voting.
An investor does not need a brokerage account or a correspondent banking relationship, they need a wallet. Every transfer is subject to ongoing sanctions screening, and Coinbase can freeze or seize assets at the wallet level where required so decentralised finance (DeFi) and regulatory integrity are not in conflict.
“ADGM issued one of the world’s first regulatory frameworks for virtual assets in 2018. That reflected a genuine institutional commitment to innovation-forward regulation, executed with the rigor that global financial markets require. No major financial center has yet built a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets,” said Brett Tejpaul, Co-CEO of Coinbase Institutional.
“Coinbase’s establishment of its international tokenisation hub in ADGM is a strong endorsement of 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 continues to provide leading global institutions with the confidence to develop responsible, blockchain-enabled financial services at scale. As tokenisation becomes an increasingly important part of capital markets infrastructure, ADGM remains committed to supporting innovation that enhances market access, transparency and investor confidence, while upholding the highest standards of regulatory oversight.” Arvind Ramamurthy, Chief Market Development Officer, ADGM, said.
