14th August 2026
By Shubhii Verma
Coinbase has received Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), clearing the way for the cryptocurrency company to establish an international tokenization hub in Abu Dhabi.
Coinbase Secures FSRA Approval in Abu Dhabi
The approval allows Coinbase to arrange deals in investments and provide custody services, creating the regulatory foundation for its planned launch of tokenized securities. The move marks a significant expansion of Coinbase’s institutional and blockchain ambitions in the United Arab Emirates (UAE), where the company is developing businesses focused on onchain capital markets and derivatives.
Under the planned framework, tokenized securities issued and registered within ADGM will be backed by underlying shares and operate under FSRA supervision. Coinbase said eligible token holders will receive economic and shareholder-related rights associated with the underlying assets, including access to dividends and voting rights, subject to the applicable terms and conditions.
oinbase Targets Onchain Access to Global Capital Markets
The company sees tokenization as a way to broaden access to global capital markets by moving traditional financial assets onto blockchain networks. Instead of relying entirely on conventional brokerage infrastructure, investors could interact with tokenized securities through digital wallets, potentially making market access more flexible and efficient.
At the same time, Coinbase emphasized that blockchain-based access will remain subject to regulatory safeguards. Transfers will undergo ongoing sanctions screening, while assets can be frozen or seized at the wallet level when legally required. This approach is designed to combine the accessibility of blockchain networks with compliance requirements traditionally associated with financial markets.
Coinbase Institutional co-CEO Brett Tejpaul said ADGM’s early development of virtual-asset regulations made the jurisdiction an attractive location for building blockchain-based financial infrastructure. He highlighted the potential for tokenized equities to combine characteristics of regulated securities, blockchain-native assets and decentralized finance.
ADGM officials also welcomed Coinbase’s decision, describing the establishment of the tokenization hub as a sign of Abu Dhabi’s growing role in digital finance. The financial centre has positioned itself as a regulated environment for virtual assets and blockchain innovation while maintaining institutional oversight.
Coinbase Expands UAE Strategy Across Abu Dhabi and Dubai
The initiative forms part of Coinbase’s broader UAE strategy. The company plans to develop major operations in both Abu Dhabi and Dubai, with Abu Dhabi serving as a hub for tokenized securities and onchain capital markets, while its Dubai operations focus on derivatives and other international activities.
The development comes as financial institutions globally explore tokenization as a potential transformation of capital markets. Tokenized stocks, bonds, funds and other assets could eventually enable faster settlement, broader distribution and more programmable financial products.
For Coinbase, securing FSRA permission represents an important step toward turning that vision into regulated infrastructure. As tokenization expands, Abu Dhabi could become an increasingly important base for institutions seeking to connect traditional financial assets with blockchain-based markets.
