Coinbase Launches Tokenization Hub in Abu Dhabi
Coinbase has established Abu Dhabi as its international tokenization hub after receiving permission from the Financial Services Regulatory Authority (FSRA). The company can now arrange deals in investments and provide custody, laying the groundwork for the launch of tokenized securities.
The ADGM will serve as a base for Coinbase to make global securities accessible to anyone with a wallet. Tokenized securities registered and issued in ADGM will be fully backed by underlying shares under FSRA supervision.
Verified token holders can receive shareholder rights, including dividends and voting rights, subject to applicable conditions. The innovation could potentially alter the way investors deal with certain securities, as transactions limited to digital securities would not require a brokerage or bank account.