Coinbase Launches Tokenization Hub in Abu Dhabi with Regulatory Approval

Coinbase has received permission from the Financial Services Regulatory Authority (FSRA) to establish its international tokenization hub in Abu Dhabi, marking 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. This move aims to bring capital markets to people who cannot access them due to high costs or lack of means.

Coinbase's Co-CEO Brett Tejpaul said, 'ADGM issued one of the world's first regulatory frameworks for virtual assets in 2018.' He added that no major financial center has built a framework that treats tokenized equities as securities, blockchain-native tokens, and DeFi-composable assets simultaneously.

The FSRA's Financial Services Permission (FSP) gives Coinbase the foundation, infrastructure, and partnership needed to bring capital markets to those who need them most. The UAE is becoming a hub for financial innovation with Coinbase establishing two major businesses outside the US: a tokenized securities hub and a global derivatives hub.

The FSRA's FSP enables token holders to receive full shareholder rights, including dividends and voting, while the system ensures ongoing sanctions screening and freezing or seizing assets where required.