Coinbase Launches Tokenization Hub in Abu Dhabi with Regulatory Permission

Coinbase has received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) to establish its international tokenization hub in Abu Dhabi, the capital of the United Arab Emirates.

This is a significant step towards building infrastructure for a more open and accessible global financial system. The license allows Coinbase to arrange deals in investments and provide custody to facilitate the launch of tokenized securities.

The FSRA's FSP gives Coinbase the regulatory foundation, infrastructure, and right partnership to bring capital markets to people who need them most. According to Brett Tejpaul, Co-CEO of Coinbase Institutional, 'ADGM issued one of the world's first regulatory frameworks for virtual assets in 2018.'

The tokenized securities registered and issued in ADGM are fully backed by underlying shares under the supervision of the FSRA and are verified by token holders. Investors do not need a brokerage account or correspondent banking relationship, only a wallet.