Coinbase has secured a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This license paves the way for the launch of an international tokenization hub focused on digital securities and blockchain-based capital markets.

What the license enables for Coinbase

Under this license, Coinbase is authorized to arrange investment deals and provide asset custody services.

Tokenized securities registered and offered within ADGM will be fully backed by underlying shares under the supervision of the FSRA.

The rights of security holders will depend on the specific terms outlined in each product's prospectus. Certain eligible holders may exercise rights such as voting or redemption, while dividends will be automatically reinvested.

Transaction procedures

Investors will not strictly require a bank or brokerage account for purely digital transactions; however, a suitable account for receiving funds is essential to exercise certain redemption rights.

All transfers will undergo continuous screening for sanctions and regulatory compliance. Coinbase maintains the authority to freeze or seize assets at the wallet level if mandated by regulatory requirements.

Integrating blockchain and capital markets

Coinbase stated that the project aims to merge the advantages of blockchain technology and decentralized finance with the rigorous standards of regulated financial markets.

ADGM has integrated the development of digital assets and tokenization into its broader strategy to establish Abu Dhabi as a premier global financial hub.

Expansion of Coinbase operations in the UAE

The Abu Dhabi project is a key component of Coinbase’s broader strategy in the UAE. The company plans to grow two of its major international business lines outside the United States:

Abu Dhabi: A hub for tokenized securities and blockchain-based capital markets

Dubai: A global center for derivatives trading

Coinbase described the license as a pivotal step in developing blockchain-based financial infrastructure and expanding global access to capital markets.