Coinbase Secures Abu Dhabi Approval for Tokenized Securities Hub

Coinbase has secured regulatory approval in Abu Dhabi to establish an international hub for tokenized securities, marking a significant step towards integrating traditional financial assets onto blockchain networks.

The Financial Services Regulatory Authority of Abu Dhabi Global Market has granted Coinbase a Financial Services Permission allowing the company to arrange investment deals and provide custody for tokenized securities. This authorization is seen as the foundation of its international tokenization hub and a key milestone in Coinbase's efforts to bring conventional capital markets onto blockchain infrastructure.

Coinbase's model is designed to go beyond existing tokenized-stock products, with securities issued and registered through the Abu Dhabi framework being fully backed by underlying shares under FSRA supervision. Verified token holders will receive shareholder rights, including dividends and voting rights, without requiring a conventional brokerage account or correspondent banking relationship.

The company estimates that around 4 billion people globally lack meaningful access to capital markets, and believes tokenization can reduce geographic and operational barriers to investing by replacing portions of the traditional brokerage infrastructure with blockchain wallets.