Coinbase makes Abu Dhabi global tokenisation hub

Coinbase has designated Abu Dhabi as its international center for tokenized securities, receiving regulatory approval to facilitate investment transactions and offer custody services through the Abu Dhabi Global Market. The Financial Services Permission from ADGM’s Financial Services Regulatory Authority enables the US-listed cryptocurrency exchange to develop tokenized investment products in the emirate.

This strategic move positions tokenized securities as a core component of Coinbase’s global expansion plan. Assets issued under the framework will be backed by underlying shares, granting verified token holders shareholder rights such as dividends and voting rights. The structure distinguishes regulated tokenized securities from synthetic products that merely track conventional shares.

Coinbase also plans to integrate blockchain wallets into the investment process, allowing eligible investors to hold and transfer tokenized assets without traditional brokerage accounts and correspondent banking. The Abu Dhabi operation bolsters Coinbase’s ambition to create an integrated financial platform encompassing cryptocurrencies, traditional securities, derivatives, and other assets.

The company’s expansion reflects the growing competition between crypto firms and established brokerages for investors seeking access to equities and other conventional instruments through blockchain infrastructure. Tokenized equities, representing shares or economic interests in shares through tokens recorded on blockchain networks, have seen a significant rise in global value, surpassing $6 billion.

However, regulatory and institutional divisions remain over the operation of such products. Coinbase’s Abu Dhabi model aims to mitigate this uncertainty by placing issuance and custody under the ADGM regulatory framework, reinforcing Abu Dhabi’s position as a hub for regulated digital assets, tokenized funds, and institutional blockchain finance.