Coinbase has chosen Abu Dhabi as the base for its international tokenization hub. The crypto exchange said on August 11, 2026, that it received Financial Services Permission, or FSP, from the Financial Services Regulatory Authority, known as the FSRA.
The approval comes through Abu Dhabi Global Market, or ADGM. ADGM is the international financial center of Abu Dhabi in the United Arab Emirates. The new permission allows Coinbase to arrange investment deals and provide custody services for tokenized securities.
This is a major step for Coinbase. The company now has a regulated base from which it can bring traditional financial assets onto blockchain networks outside the United States.
What Are Tokenized Securities?
Tokenized securities are normal financial assets that have a digital form on a blockchain. These assets can include shares and other types of investments.
The basic idea is simple. Instead of keeping a record of an asset only inside a traditional financial system, a digital token can represent that asset on a blockchain. The token can then move through a blockchain network under the rules set by regulators.
Coinbase plans to offer digital securities backed by real shares. These tokens will be registered and issued in ADGM under FSRA supervision. The company said the assets will remain fully backed by the shares behind them.
This point is important because the token is not meant to be an empty digital asset. It represents a real financial asset. The structure gives investors a direct link between the blockchain token and the underlying shares.
Investors Can Get Shareholder Rights
Coinbase said verified token holders can receive full shareholder rights, including dividends and voting rights. This makes the product different from a simple crypto token that only tracks the price of an asset.
The company also said dividends will be reinvested automatically. However, some rights depend on the vesting rules set out in the prospectus for each digital security.
There are also rules around redemption. A vested holder may need a suitable brokerage or bank account to receive money from certain redemption actions. Still, transactions that only involve the digital securities do not require such a brokerage or bank account.
These rules show that Coinbase is not trying to remove financial regulation from tokenized assets. Instead, it wants blockchain technology to work inside a regulated financial structure.
A Wallet Could Replace Some Old Barriers
One of the biggest ideas behind the new service is easier access.
Coinbase said about 4 billion people around the world cannot access capital markets. The company argues that many people face this problem because the current financial system was not built for them and the cost of access can be too high.
With tokenized securities, Coinbase says an investor may not need a traditional brokerage account or a correspondent banking relationship for certain transactions. A wallet can be enough for transactions that involve the digital securities.
This could make access to some financial assets easier. A person would still need to meet the required rules, but the process could have fewer traditional steps.
The idea is not to make every financial product available to everyone without limits. Instead, Coinbase wants blockchain technology to reduce some of the old barriers while regulators keep control over who can use each product.
Regulation Remains at the Center
The Abu Dhabi approval is important because Coinbase is not launching its tokenized securities service without regulatory oversight.
The FSRA will supervise the securities issued and registered in ADGM. Coinbase said each tokenized security will be backed by the underlying shares.
Transfers will also face continuous sanctions checks. Coinbase said it can freeze or seize assets at the wallet level when required.
This is a key part of the plan. Blockchain systems are often linked with open finance and decentralized applications. Yet regulated securities must follow financial laws. Coinbase wants these two areas to work together rather than operate as separate systems.
The company believes ADGM has a strong framework for this type of model. ADGM introduced one of the world’s first regulatory frameworks for virtual assets in 2018.
Why Abu Dhabi Was Chosen
Abu Dhabi has made a major effort to attract digital asset and blockchain companies. Its regulatory system has helped the emirate build a reputation as a place where financial firms can test new blockchain products under clear rules.
Coinbase sees this as a major advantage.
Brett Tejpaul, co-CEO of Coinbase Institutional, said ADGM has created a framework that can treat tokenized equities as securities, blockchain-native tokens, and assets that can work with decentralized finance.
That combination is important for Coinbase. The company wants tokenized assets to work with the wider blockchain economy while still follow financial rules.
ADGM also sees tokenization as a major part of the future of capital markets. Arvind Ramamurthy, ADGM’s Chief Market Development Officer, said the Coinbase hub shows the growing role of Abu Dhabi in global finance.
Coinbase Already Has a UAE Strategy
The new Abu Dhabi hub is not Coinbase’s first major move in the United Arab Emirates.
The company already has a business base in Dubai. Coinbase said its Dubai operation will serve as a global hub for derivatives, while Abu Dhabi will serve as a hub for tokenized securities and onchain capital markets.
This gives Coinbase two major financial bases in the UAE, each with a different purpose.
The company has also worked on tokenization before. In 2023, Coinbase’s asset management arm launched Project Diamond. The project aimed to let institutional investors issue and trade digital debt instruments through Base, Coinbase’s Ethereum-based blockchain network.
The company has therefore spent several years testing ways to place traditional financial products on blockchain networks.
Abu Dhabi’s Mubadala Adds to the Story
Coinbase’s Abu Dhabi plan also comes at a time when large financial institutions in the region are exploring tokenization.
Last month, Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth fund, tokenized one of its private-market investment strategies through UAE-based infrastructure provider KAIO.
The fund used blockchain networks that included Base. Coinbase itself also took exposure to the fund.
This gives Coinbase a direct link to a major Abu Dhabi financial institution and adds more evidence that tokenization is becoming part of the region’s financial plans.
Why Tokenization Matters for Finance
Traditional financial markets usually operate through banks, brokers, clearing firms, custodians, and other financial companies. Each part of the system has its own process.
Blockchain can bring some of these records onto a shared digital network.
Supporters of tokenization believe this can make asset transfers easier and faster. It may also allow markets to work around the clock instead of only during normal market hours.
Tokenized assets could also become useful as collateral in onchain financial markets. A token that represents a real share, bond, fund, or other asset could work with blockchain-based financial products under the right rules.
This is one reason banks and asset managers have shown more interest in tokenization. The goal is not simply to put an old asset into a new digital form. The larger goal is to create a financial system where traditional assets can work with blockchain infrastructure.
A New Chapter for Coinbase
For Coinbase, the Abu Dhabi approval is about more than one new product. It is part of a much larger plan to expand beyond normal crypto trading.
The company is building businesses around crypto, stablecoins, derivatives, custody, stocks, and tokenized assets. Its UAE strategy now gives it a clear split between two major locations.
Dubai will support its global derivatives business, while Abu Dhabi will host its international tokenization hub.
This gives Coinbase a strong position as more traditional financial assets move toward blockchain networks.
What Comes Next
The next step will be the launch of Coinbase’s tokenized securities under the new regulatory permission.
The exact assets, products, and customer access will depend on the rules for each digital security and the relevant prospectus. Coinbase has not said that every investor will have access to every tokenized asset.
Still, the basic direction is clear. Coinbase wants real financial assets to exist on blockchain networks while regulators retain oversight.
For Abu Dhabi, the move adds another major global financial company to its digital asset sector. For Coinbase, it creates a regulated base for its international tokenization plans.
For the wider financial market, the development shows how quickly the line between traditional finance and crypto is becoming less clear.
Abu Dhabi Takes a Bigger Role
Coinbase’s decision places Abu Dhabi at the center of one of the most important changes in modern finance.
The company has received FSP approval from the FSRA, plans to issue and register tokenized securities backed by real shares, and will provide custody and investment services through its new hub.
Investors in these products can receive shareholder rights such as dividends and voting rights, subject to the relevant rules. Transfers will also face sanctions checks, and Coinbase can freeze or seize assets when required.
At the same time, Coinbase is using its wider UAE presence to create two major business bases outside the United States.
The move shows that tokenization is no longer only a crypto idea. Large financial firms now see blockchain as a possible part of the future market system. Abu Dhabi wants to be one of the places where that future takes shape, and Coinbase has chosen to build a major part of its international plan there.
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