ADGM licence enables launch of tokenised securities platform as Coinbase expands its presence in on-chain capital markets and digital finance
Abu Dhabi: Coinbase has received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), enabling it to establish its international tokenisation hub in Abu Dhabi.
The licence authorises Coinbase to arrange deals in investments and provide custody services, forming the foundation for the launch of its tokenised securities business and broader tokenisation operations from ADGM.
Coinbase said the move represents the first step in addressing barriers that limit access to capital markets for billions of people globally. The company argues that many potential investors remain excluded due to the complexity and cost of traditional market infrastructure.
Under the framework, tokenised securities registered and issued in ADGM will be fully backed by underlying shares and regulated by the FSRA. Token holders will receive shareholder rights, including voting rights and dividend entitlements.
Coinbase said investors will be able to access tokenised securities through digital wallets, without requiring conventional brokerage accounts or correspondent banking relationships. The company added that all transfers will remain subject to sanctions screening and compliance requirements.
Brett Tejpaul, Co-Chief Executive Officer of Coinbase Institutional, said: “ADGM issued one of the world’s first regulatory frameworks for virtual assets in 2018. That reflected a genuine institutional commitment to innovation-forward regulation, executed with the rigour that global financial markets require.”
He added that no major international financial centre has yet developed a framework that simultaneously treats tokenised equities as securities, blockchain-native tokens and decentralised finance-compatible assets.
Arvind Ramamurthy, Chief Market Development Officer at ADGM, said Coinbase’s decision reinforces Abu Dhabi’s growing role in the future of global finance.
“Coinbase’s establishment of its international tokenisation hub in ADGM is a strong endorsement of Abu Dhabi’s growing role in shaping the future of global finance.”
He said the move reflects the strength of ADGM’s regulatory framework and its ability to support the development of blockchain-enabled financial services while maintaining high standards of investor protection and regulatory oversight.
Ramamurthy added that ADGM remains committed to supporting innovation that enhances market access, transparency and investor confidence.
Coinbase said its investments in Abu Dhabi and Dubai form part of a broader strategy to establish two major global businesses outside the United States: a hub for tokenised securities and on-chain capital markets, and a global hub for derivatives trading.
The company said these initiatives reflect its confidence in the UAE as a centre for the next generation of financial infrastructure.
Source: Emirates 24|7