News

Coinbase has received a Financial Services Permission (FSP) from the FSRA to establish its international tokenization hub in ADGM, the international financial centre of Abu Dhabi, the Capital of the United Arab Emirates (UAE)This is the most significant step we have taken yet toward building the infrastructure for a more open, more accessible global financial system.

Coinbase has received the license from the FSRA of ADGM, clearing us to arrange deals in investments and provide custody in order to facilitate our launch of tokenized securities. This is the foundation for our international tokenization hub in Abu Dhabi. 

The reason this matters: 4 billion people worldwide cannot access capital markets. Not because they lack the means, but because the system was never built for them. Investable opportunities are out of reach, and the cost of participation is too high. This license is our first step toward changing that.

The tokenized securities registered and issued in ADGM are fully backed by underlying shares under the supervision of the FSRA and verified token holders receiving full shareholder rights, including dividends and voting.(1)  

An investor does not need a brokerage account or a correspondent banking relationship, they need a wallet.(2) Every transfer is subject to ongoing sanctions screening, and we can freeze or seize assets at the wallet level where required so DeFi and regulatory integrity are not in conflict. 

“ADGM issued one of the world's first regulatory frameworks for virtual assets in 2018. That reflected a genuine institutional commitment to innovation-forward regulation, executed with the rigor that global financial markets require. No major financial center has yet built a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets,” said Brett Tejpaul, Co-CEO of Coinbase Institutional. 

“Coinbase’s establishment of its international tokenisation hub in ADGM is a strong endorsement of Abu Dhabi’s growing role in shaping the future of global finance. It reflects the strength of ADGM’s progressive, robust and internationally aligned regulatory framework, which continues to provide leading global institutions with the confidence to develop responsible, blockchain-enabled financial services at scale. As tokenisation becomes an increasingly important part of capital markets infrastructure, ADGM remains committed to supporting innovation that enhances market access, transparency and investor confidence, while upholding the highest standards of regulatory oversight.” Arvind Ramamurthy, Chief Market Development Officer, ADGM, said.

This launch is part of a broader commitment to the UAE. Through our investments in Abu Dhabi and Dubai, Coinbase is establishing two of our most ambitious global businesses outside the United States: a hub for tokenized securities and onchain capital markets, and a global hub for derivatives. Together, they reflect our confidence in the UAE as a home for the next generation of financial infrastructure.

The FSRA’s FSP gives us the regulatory foundation, the infrastructure, and the right partnership to bring capital markets to the people who need them most. The next frontier for global finance is onchain. We are building it.

(1) Digital Securities are subject to certain Vesting Conditions, as defined in the Prospectus for such Digital Securities. Only Vested Holders, as defined in the Prospectus, may exercise certain rights including voting with respect to the Underlying, as defined in the Prospectus. Dividends are automatically reinvested and all Holders (both Vested and Unvested), as defined in the Prospectus, may benefit economically from such feature of the Digital Securities, although only Vested Holders may be eligible for Redemption Rights, as defined in the Prospectus. 

(2) In order to exercise certain rights with respect to the Digital Securities, namely Redemption Rights, as defined in the Prospectus, a Vested Holder must have an applicable brokerage or bank account capable of receiving the proceeds of any such Redemption subject to the Terms and Conditions set forth in the Prospectus. However, transactions limited to the Digital Securities do not require the establishment of such brokerage and/or bank account.