Coinbase Secures Abu Dhabi Approval for Tokenized Securities Services

Coinbase has secured regulatory approval in Abu Dhabi to arrange investment deals and provide custody services, positioning the emirate as its international base for tokenized securities and onchain capital markets.

Coinbase Secures Abu Dhabi FSRA License

Coinbase has received a Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market. As a result, the exchange can arrange investment deals and provide custody services.

The company plans to make ADGM its international tokenization hub outside the United States. From Abu Dhabi, Coinbase will develop services for traditional financial assets that use blockchain networks.

In addition, Coinbase said the approval provides the regulatory base for its tokenization business. The company will issue tokenized securities against underlying shares under FSRA supervision.

Tokenized Securities Offer Shareholder Rights

Each tokenized security will represent an underlying share and follow conditions listed in its prospectus. Under those conditions, eligible holders can receive shareholder rights, including voting rights.

However, dividends will automatically reinvest under the structure outlined for the digital securities. However, certain redemption and voting rights will apply only to holders who meet the relevant vesting conditions.

Investors will not need a traditional brokerage account or correspondent banking relationship. Instead, Coinbase said users will need a compatible wallet to hold the digital securities.

Moreover, every transfer will undergo sanctions screening under the regulatory framework. Coinbase can also freeze or seize assets at the wallet level when applicable rules require such action.

Brett Tejpaul, Co-CEO of Coinbase Institutional, said, “The next phase of global finance is on-chain.” He also described ADGM as a suitable base for tokenized securities.

Similarly, ADGM Chief Market Development Officer Arvind Ramamurthy said Coinbase’s move supports blockchain-based financial services in Abu Dhabi.

UAE Expansion Extends Beyond Tokenization

Coinbase’s Abu Dhabi hub forms part of its wider expansion across the UAE. At the same time, the company is developing a derivatives business in Dubai.

Together, the two operations will focus on tokenized securities, on-chain capital markets and derivatives. Coinbase said the UAE will host two of its largest businesses outside the United States.

Independently, Coinbase is preparing to offer futures, perpetual contracts and options to professional investors in the UK. The planned rollout will cover crypto, stocks, commodities and foreign exchange.

Moreover, more than 170 contracts will be available under the UK expansion. Perpetual contracts will support 24-hour trading, while leverage will reach 50 times for perpetuals and 20 times for dated futures.

For UAE users, comparing the best crypto exchanges can help identify platforms that align with the region’s evolving regulatory framework.