Coinbase stock extended its rally after Abu Dhabi Global Market’s Financial Services Regulatory Authority approved the company’s planned international tokenized securities hub. COIN closed 9.55% higher at $160.20 before rising another 8.28% to $173.47 in pre-market trading. The approval strengthens Coinbase’s expansion into regulated blockchain-based securities and institutional financial services.
The authorization allows Coinbase to arrange investment deals and provide custody services for tokenized securities operating inside ADGM’s regulated financial framework. These securities will use underlying shares, and verified holders will receive economic rights linked to the securities they hold. Some shareholder rights, including voting powers, will depend on conditions attached to each digital security. Coinbase will also apply sanctions screening to transfers conducted through supported blockchain wallets and can freeze or seize assets at the wallet level when legal or regulatory requirements apply.
Project Diamond supported Coinbase’s push into regulated tokenization. The platform initially focused on issuing blockchain-based debt instruments for institutional participants and later issued a short-term USDC-denominated discount note through Coinbase’s Base blockchain network. Project Diamond subsequently integrated Chainlink’s Cross-Chain Interoperability Protocol for cross-chain connectivity and data verification. The latest approval expands that structure beyond digital debt and into securities backed by company shares.
Coinbase is entering a tokenized securities market that already includes several regulated financial companies in Abu Dhabi. Ondo Finance received approval for tokenized United States stocks and exchange-traded funds earlier this year, while BNY launched Bitcoin and Ethereum custody services through an ADGM-based partnership in May. Coinbase has separately introduced tokenized shares linked to companies including Nvidia, Google, Strategy and SpaceX.
The company plans to split its major United Arab Emirates operations between Abu Dhabi and Dubai. Abu Dhabi will host tokenized securities activities, while Dubai will support international derivatives operations. The expansion comes as regional tokenized assets could approach $500 billion across Gulf markets by 2030.
