Coinbase has selected Abu Dhabi as a base for its tokenized securities business after securing a license from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
The license allows Coinbase to arrange investment transactions and provide custody services for tokenized financial instruments within a regulated framework. The company plans to represent shares and other securities on blockchain networks while preserving investors’ rights, including dividends and voting rights, through digital wallets.
The move expands Coinbase’s digital asset operations beyond cryptocurrency trading and comes as financial institutions explore tokenization across capital markets. According to the announcement, the company’s ADGM hub will support its efforts to build infrastructure for blockchain-based financial instruments.
Brett Tejpaul, Co-Head of Coinbase Institutional, said ADGM’s framework allows tokenized shares to be treated as both securities and blockchain-based tokens.
The company still faces the challenge of turning the licensed infrastructure into a functioning market with enough investor participation and liquidity. For Abu Dhabi, the move supports its broader push to attract blockchain and financial technology companies.
Source: EntArabi
