Coinbase Secures ADGM Licence for Tokenised Securities Hub

Coinbase, one of the world's largest crypto exchanges, has secured a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), allowing it to arrange deals in investments and provide custody in connection with tokenised securities.

The licence is a key step in establishing Coinbase's international tokenisation hub, which will be the first of two major non-US institutional businesses the company is setting up in the UAE, alongside a derivatives operation in Dubai.

The FSP covers the arrangement and custody of tokenised equities that are fully backed by underlying shares. Holders of the digital securities will receive economic exposure to dividends, although voting and redemption rights are subject to vesting conditions set out in individual prospectuses.

Brett Tejpaul, co-CEO of Coinbase Institutional, noted that the ADGM framework is significant because it treats tokenized equities as both securities and blockchain-native tokens, and allows for composability on-chain.

The ADGM framework is seen as a competitive advantage for the UAE, which is positioning itself as a hub for tokenised securities infrastructure. Coinbase's existing retail and institutional distribution will be an asset in promoting the product, but the reach will depend on which jurisdictions allow their residents to hold ADGM-issued digital securities.