Coinbase Secures ADGM License to Tokenize Securities

Coinbase has secured a license from the Abu Dhabi Global Market (ADGM) to establish an international tokenization hub for tokenized securities. This move allows Coinbase to organize deals and custody digital securities, marking a significant step towards bringing traditional securities on-chain.

The Financial Services Regulatory Authority (FSRA) granted Coinbase Financial Services Permission for its planned tokenized-securities business. According to Brett Tejpaul, co-CEO of Coinbase Institutional, no major financial center has yet built a framework that treats tokenized equities as simultaneously securities, blockchain-native tokens, and DeFi-composable assets.

Coinbase will make shares issued and registered in ADGM backed 100% physically, with changes of ownership through crypto wallets rather than brokerage accounts. Verified holders may be eligible to receive economic and governance rights relating to the underlying securities, though these rights are conditional.