Coinbase is establishing Abu Dhabi as its international base for tokenized securities after securing regulatory approval that allows the crypto exchange to arrange investment deals and provide custody services for blockchain-based securities.
The company said Tuesday that it had received a Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market. The approval gives Coinbase a regulated platform outside the United States from which it can develop and offer digital representations of traditional financial assets.
Under the framework, Coinbase plans to issue and register digital securities backed by underlying shares. The assets will operate under regulatory oversight in ADGM while combining characteristics of regulated securities with blockchain-based infrastructure that can interact with decentralized finance protocols.
Eligible investors could receive economic rights associated with the underlying assets, including dividends and, where applicable, voting rights. The specific rights will depend on the terms set out in the relevant prospectuses.
Coinbase is also emphasizing a potentially simpler route to access. Investors in eligible jurisdictions will be able to hold and transfer tokenized securities through digital wallets rather than relying exclusively on traditional brokerage accounts or banking arrangements.
The blockchain-based structure will not remove regulatory controls. Transfers will remain subject to sanctions screening, while mechanisms will be available to freeze or seize assets when required by regulators.
Abu Dhabi takes center stage
Coinbase is positioning ADGM as its primary international hub for tokenization and onchain capital markets. The move adds another layer to the company’s expanding presence in the UAE, alongside its derivatives-focused operations in Dubai and other initiatives across the region.
The development comes as financial institutions accelerate efforts to put real-world assets on blockchain networks. Banks and asset managers are exploring tokenization across areas including investment funds, bonds, private credit and equities, seeking to improve settlement, transferability and access to financial products.
The UAE has emerged as one of the jurisdictions seeking to attract this activity through clearer regulatory frameworks and policies designed to encourage digital-asset innovation.
One example linked to Coinbase’s new structure is Coinbase Onchain SPV Ltd, an ADGM-incorporated entity involved in structures representing beneficial interests in shares of companies including Apple. The approach is designed to combine the legal framework of traditional securities with the transferability and programmability offered by blockchain technology.
For Coinbase, Abu Dhabi also provides a strategic route into international tokenization markets as the company continues to navigate an increasingly complex regulatory environment in the United States.
The long-term opportunity, however, will depend on more than regulatory approval. Deep liquidity, institutional participation, investor demand and consistent rules across jurisdictions will be critical if tokenized securities are to move from early experiments into a mainstream financial market.
Coinbase’s expansion underscores the UAE’s growing ambition to serve as a bridge between traditional finance and digital-asset infrastructure. By establishing a regulated tokenization hub in Abu Dhabi, the exchange is betting that blockchain-based securities can eventually broaden access to global capital markets while bringing traditional assets deeper into the onchain economy.
