Coinbase Wins ADGM Tokenization Hub License with Strings Attached

Coinbase has secured regulatory approval from the Abu Dhabi Global Market to establish an international tokenization hub for tokenized securities. The Financial Services Regulatory Authority granted Coinbase Financial Services Permission for its planned tokenized-securities business.

The hub will allow Coinbase to organize deals and custody digital securities, but it's unclear when the launch date will be or which jurisdictions investors from will enter. Shares issued and registered in ADGM will be backed 100% physically, with changes of ownership through crypto wallets rather than brokerage accounts.

Brett Tejpaul, co-CEO of Coinbase Institutional, noted that no major financial center has yet built a framework treating tokenized equities as securities, blockchain-native tokens, and DeFi-composable assets simultaneously. The Abu Dhabi hub will target this gap while Coinbase continues to operate its separate Dubai operation focusing on global derivatives.

The license does not reveal several important details, including the equities intended to be tokenized, the supporting blockchain, launch timing, fees, or eligible jurisdictions. Additionally, there are conditions on shareholder rights, with only holders satisfying defined vesting requirements able to exercise voting and redemption rights.