Coinbase Establishes Abu Dhabi Tokenization Hub

Coinbase has established its international tokenization hub in Abu Dhabi, securing regulatory approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This move allows Coinbase to arrange investment deals and provide custody for tokenized securities.

The company plans to use this license to offer digital securities backed by underlying shares. These tokens will be registered and issued in ADGM under FSRA oversight.

Abu Dhabi has positioned itself as a key testing ground for the tokenization movement, which is gaining traction across traditional finance. Tokenization enables easier transfer of securities around the clock, near-instant settlement of trades, and potential use as collateral in on-chain markets.

Coinbase already has a presence in the United Arab Emirates, having initiated Project Diamond in 2023 to let institutional investors issue and trade digital debt instruments using its Ethereum-based blockchain network, Base. The Abu Dhabi operation will sit alongside Coinbase's derivatives business in Dubai.