Coinbase establishes a new tokenization hub in Abu Dhabi, gaining regulatory approval to manage tokenized securities, enhancing its global presence.
Coinbase is making significant strides in the realm of tokenization by establishing a new hub in Abu Dhabi, having secured regulatory approval for tokenized securities.
New Hub Enhances Abu Dhabi's Role in Crypto Finance
The cryptocurrency exchange has announced that it has received a Financial Services Permission from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This allows Coinbase to manage investment transactions and custody of tokenized securities from the UAE.
Coinbase plans to issue and register digital securities linked to real-world shares under ADGM’s oversight. These digital assets will be categorized as securities and DeFi-compliant tokens, aligning with a broader trend in which traditional financial instruments are being transformed into tokenized forms.
Abu Dhabi is positioning itself as a significant player in this evolving landscape. The emirate has been proactive in establishing a regulatory framework for virtual assets since 2018, attracting companies focused on crypto and tokenization who seek a compliant operational base.
Brett Tejpaul, co-CEO of Coinbase Institutional, noted the uniqueness of Abu Dhabi's regulatory approach, stating that it allows tokenized equities to be treated as both securities and blockchain-native assets.
This move is part of Coinbase’s broader strategy to enhance its presence in the Middle East, complementing its existing derivatives operations in Dubai and previous initiatives like Project Diamond, which aimed to facilitate the issuance and trading of digital debt instruments. Recent collaborations in the region, such as with Mubadala Capital, further illustrate the growing momentum of tokenization in traditional finance.
