Coinbase Launches Tokenization Hub in Abu Dhabi with FSRA Approval
Coinbase has established its tokenization hub in Abu Dhabi, with Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA). This is a significant step towards building infrastructure for a more open and accessible global financial system. The license enables Coinbase to arrange deals in investments and provide custody services.
The move aims to bring capital markets to people who are currently unable to access them, with 4 billion people worldwide lacking access due to the high cost of participation. Tokenized securities registered and issued in ADGM will be fully backed by underlying shares under the supervision of FSRA.
According to Brett Tejpaul, Co-CEO of Coinbase Institutional, 'ADGM issued one of the world's first regulatory frameworks for virtual assets in 2018.' He praised Abu Dhabi's progressive and robust regulatory framework as providing confidence to global institutions to develop responsible blockchain-enabled financial services.