Coinbase Secures Abu Dhabi Hub for Tokenized Securities

Coinbase has secured regulatory approval in Abu Dhabi to build an international hub for tokenized securities, giving the crypto exchange a supervised base for bringing traditional stocks onto blockchain networks outside the United States.

The Financial Services Regulatory Authority of Abu Dhabi Global Market granted Coinbase a license on August 11 to arrange and custody tokenized securities. This move marks Coinbase's expansion into non-U.S. markets as it targets international growth.

Tokenization converts ownership rights in traditional assets, such as stocks, into digital tokens that can move across blockchain networks. Coinbase's planned securities would remain regulated financial instruments while gaining some of the portability associated with crypto assets.

The system allows eligible users to participate through digital wallets rather than relying exclusively on traditional brokerage accounts and correspondent banking relationships. This flexibility does not mean the system is permissionless, as transfers remain subject to sanctions screening, and regulators can require assets to be frozen or seized at the wallet level.

Abu Dhabi will anchor Coinbase's international tokenization and onchain capital markets operation, while Dubai serves as the center of its global derivatives strategy. The move deepens Coinbase's push into the United Arab Emirates (UAE) and is expected to help address barriers that keep billions of people from meaningful access to capital markets.