Coinbase Receives Abu Dhabi License for International Tokenization Hub

Coinbase has received a license from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi's International Financial Centre (ADGM), allowing it to establish an international tokenization hub in the UAE.

The hub will facilitate the launch of tokenized securities, which are backed by underlying shares and verified by token holders. This development aims to increase accessibility to capital markets for 4 billion people worldwide who currently cannot access them due to high costs or lack of infrastructure.

Coinbase's Co-CEO Brett Tejpaul stated that ADGM's regulatory framework is a key factor in their decision, saying 'ADGM issued one of the world's first regulatory frameworks for virtual assets in 2018... No major financial center has yet built a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets.'

Arvind Ramamurthy, Chief Market Development Officer at ADGM, added 'Coinbase's establishment of its international tokenisation hub in ADGM is a strong endorsement of Abu Dhabi's growing role in shaping the future of global finance... Tokenisation becomes an increasingly important part of capital markets infrastructure.'

This move is part of Coinbase's broader commitment to the UAE, where it is establishing two of its most ambitious global businesses outside the US: a hub for tokenized securities and on-chain capital markets, and a global hub for derivatives.