Coinbase is setting up an international tokenization hub in Abu Dhabi after receiving regulatory approval to provide services tied to tokenized securities from the emirate.
The company said it has obtained Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market, allowing it to arrange investment deals and offer custody for tokenized securities as it expands further into onchain finance.
License clears path for tokenized securities offering
The approval from the Financial Services Regulatory Authority, or FSRA, gives Coinbase the ability to support tokenized securities activity within Abu Dhabi Global Market, known as ADGM. Under the permission, the company can arrange investment deals and provide custody services for these assets.
Coinbase plans to use the license to offer digital securities backed by underlying shares. According to the company’s stated structure, the tokens would be registered and issued in ADGM and remain under FSRA oversight.
Part of a broader tokenization push
The Abu Dhabi hub is intended to support Coinbase’s wider effort in tokenization, an area that has been gaining traction across traditional finance. The model described by the company is aimed at moving securities onto blockchain-based infrastructure.
Supporters of tokenization argue that this approach could allow securities to trade around the clock, shorten settlement times to near-instant execution, and eventually make tokenized assets usable as collateral in onchain markets.
Why Abu Dhabi matters
Abu Dhabi has been positioning itself as a venue for tokenization experiments and regulated digital asset activity. ADGM introduced a regulatory framework for virtual assets in 2018, helping it attract firms looking for a formal base in the region.
That regulatory backdrop appears to be a factor in Coinbase’s decision to anchor its international tokenization effort there, with the company using the market’s existing oversight structure for issuance and supervision.
Next step in Coinbase’s UAE expansion
The new Abu Dhabi operation adds to Coinbase’s presence in the United Arab Emirates rather than replacing its existing business there. It will operate alongside the company’s derivatives business in Dubai.
For now, the confirmed next step is the buildout of tokenized securities services from ADGM under the newly granted permission. Coinbase has framed the initiative as part of a deeper move into onchain financial infrastructure from a regulated base in the UAE.
Source: www.coindesk.com