Coinbase has obtained a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), paving the way for the launch of an international tokenization hub in the UAE capital. The license, announced on August 11, 2026, empowers Coinbase to arrange investment deals and provide custody for tokenized securities backed by real-world stocks, all under FSRA supervision.
The approval marks a significant stride in Coinbase’s global expansion strategy, positioning the ADGM hub alongside its existing derivatives operation in Dubai. Under the new framework, tokenized securities registered in ADGM will grant verified token holders full shareholder rights—including dividends and voting—without the need for a brokerage account or correspondent banking relationship. Coinbase emphasized that the hub will integrate sanctions screening and allow for asset freezing at the wallet level, demonstrating what the company describes as a convergence of decentralized finance and regulatory compliance.
Brett Tejpaul, Co-CEO of Coinbase Institutional, highlighted ADGM’s unique approach, noting it is the first major financial center to develop a framework that treats tokenized equities as both securities and blockchain-native, DeFi-composable assets. This move builds on Coinbase’s earlier initiatives in the UAE, including Project Diamond (which began in 2023 for institutional digital debt instruments) and a recent tokenization of a private-market investment strategy by Mubadala Capital using Coinbase’s Ethereum-based blockchain, Base.
The ADGM has cultivated a virtual asset regulatory framework since 2018, attracting a cluster of crypto and tokenization firms. Arvind Ramamurthy, ADGM’s Chief Market Development Officer, called Coinbase’s selection a strong endorsement of Abu Dhabi’s role in shaping next-generation financial infrastructure. The new hub is expected to accelerate the on-chain migration of traditional assets—such as funds, bonds, and equities—driven by faster settlement times and DeFi collateral use cases.
