Coinbase has secured regulatory permission in Abu Dhabi to establish an international tokenization hub, giving the exchange a regulated base for bringing traditional securities onto blockchain infrastructure.
The company received Financial Services Permission from the Financial Services Regulatory Authority on August 11 to operate from Abu Dhabi Global Market, the UAE capital’s international financial center. Coinbase called the approval its most significant step yet toward building infrastructure for global onchain capital markets.
The hub will support regulated securities tokenization, investment matching and custody. Eligible investors outside restricted jurisdictions will be able to access tokenized securities through blockchain wallets rather than relying exclusively on conventional brokerage and banking infrastructure.
Tokenized Securities Remain Backed By Underlying Assets
Coinbase’s structure is designed around security tokens backed by underlying traditional securities rather than synthetic contracts that merely track market prices.
The model extends the company’s existing 1:1-backed tokenized U.S. stock push, where blockchain tokens represent underlying shares while supporting onchain transfers, redemptions and investor entitlements.
Wallet-level compliance remains part of the infrastructure. Eligible addresses can be screened for sanctions and jurisdictional restrictions, while regulated controls can restrict transfers when required. The permission sits inside ADGM’s broader framework covering digital securities, virtual assets, tokenized funds and other blockchain-based financial products.
The Abu Dhabi operation is intended for international markets and does not create a new tokenized-securities offering for U.S. customers.
Abu Dhabi Becomes Coinbase’s Tokenization Base
The new hub gives Coinbase a regulated location for issuance, custody and distribution as tokenized securities move from experimental products toward a larger capital-market business.
Coinbase has already connected stablecoins with regulated investment products through its USDC and EURC rails for Spiko’s tokenized UCITS money-market funds. The Abu Dhabi permission adds a securities-focused regulatory layer to that infrastructure.
ADGM has developed separate frameworks for digital securities and virtual assets and requires firms conducting regulated financial activities inside the center to obtain FSRA permission. The jurisdiction has also hosted regulated tokenized securities backed by private and public-market assets.
Coinbase’s UAE footprint now combines the Abu Dhabi tokenization operation with its wider regional activity as the company builds trading, custody and settlement infrastructure outside the United States.
Tokenized Stock Market Expands Beyond Crypto Exchanges
The approval arrives as tokenized stocks have grown into a $1.8 billion onchain market, led by platforms including Ondo and xStocks.
Competition has expanded rapidly across exchanges and blockchain-native platforms. Hyperliquid recently added native xStocks markets for Nvidia, SPY, QQQ, SK Hynix and Micron, while Ondo has pushed hundreds of tokenized equities and ETFs across multiple networks.
Coinbase’s new Financial Services Permission gives it a regulated Abu Dhabi base for building the issuance, custody and distribution layer behind those types of onchain securities, with access limited by product eligibility and jurisdiction.
