Coinbase Unveils Tokenized Stocks in Abu Dhabi

Coinbase has launched its first tokenized stocks in Abu Dhabi's Global Market, offering ownership in Apple, Google, Meta, and Nvidia. The tokens are backed 1:1 by the underlying stocks and can only trade on decentralized exchanges (DEXs). Unlike structured notes from other issuers, these tokens give holders a beneficial interest in real shares.

The issuer holds the underlying shares in trust for token holders, who have a claim against the issuer. However, this arrangement raises questions about the ownership structure and potential risks for unvested token holders.

The tokens can circulate freely via DeFi, similar to stablecoins, but pseudonymous ownership comes with downsides compared to compliance-based models.