Coinbase Launches Tokenization Hub in Abu Dhabi with Regulatory Approval
Coinbase has received regulatory approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market to build a tokenization hub in the UAE. The company plans to bring traditional financial assets onto blockchain networks, making it easier for people around the world to access capital markets.
The new hub will allow digital wallets to be used for accessing and transferring eligible tokenized securities, reducing barriers to entry for investors. Coinbase sees tokenization as a way to make capital markets more accessible, citing that around 4 billion people worldwide cannot easily access them due to high costs and limited access to traditional financial services.
The company's model does not mean tokenized securities will operate like unrestricted crypto tokens. Transfers will remain subject to ongoing sanctions screening, and assets can be frozen or seized at the wallet level if required by law.