Coinbase has received Financial Services Permission (FSP) from the Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA), enabling the cryptocurrency exchange to establish an international hub for tokenized securities in the UAE capital.

The regulatory permission allows Coinbase to arrange deals in investments and provide custody services, creating the regulatory foundation for its planned launch of tokenized securities. According to the company's official blog post, ADGM will serve as its international tokenization hub, supporting Coinbase's goal of making "global securities accessible to anyone with a wallet."

ADGM launched its digital assets regulatory framework in 2018, positioning itself as one of the earliest jurisdictions to provide comprehensive rules for digital securities issuance and custody. The FSRA regime has since attracted multiple crypto and blockchain firms seeking a regulated environment for tokenized financial products.

Regulatory Framework and Tokenized Securities Structure

Coinbase stated that tokenized securities registered and issued in ADGM will be fully backed by underlying shares under FSRA supervision. Verified token holders will be eligible to receive shareholder rights, including dividends and voting rights, subject to applicable conditions for the digital securities.

The company announced the milestone on X:

Coinbase has established Abu Dhabi (ADGM) as our international tokenization hub. Our newly acquired FSRA license means that we can now bring global securities to anyone with a wallet. The next frontier of global finance is onchain, and we're building it from the UAE. pic.twitter.com/nwPvHrWJYw — Coinbase 🛡️ (@coinbase) August 11, 2026

Traditional Securities Move Onchain

According to Coinbase, transactions limited to its digital securities would not require investors to establish a brokerage or bank account, although some redemption rights may still require an eligible brokerage or bank account. The company will perform continuous sanctions screening for all transfer activities and retains the ability to freeze or seize assets at the wallet level if necessary.

Brett Tejpaul, Co-CEO at Coinbase Institutional, said the innovation could allow tokenized equities to become "securities, blockchain-native tokens, and DeFi-composable assets."

The tokenization of real-world assets has drawn growing interest from major financial institutions, with firms such as BlackRock, Franklin Templeton, and JPMorgan exploring blockchain-based fund products and settlement systems. Coinbase's entry into ADGM-regulated tokenized securities places it among a field of traditional and digital asset firms competing to bring equities, bonds, and funds onchain.

Next Steps and Broader UAE Strategy

Coinbase is now moving to leverage the regulatory foundation to develop its tokenized securities products. The company described the announcement as "the most significant step we have taken yet" toward building a more open and accessible global financial system, stating, "The next frontier for global finance is onchain."

The move also forms part of Coinbase's wider UAE strategy. The firm confirmed that Abu Dhabi will serve as the hub for tokenized securities and onchain capital markets, while Dubai will act as the global hub for derivatives. This division of operations underscores the UAE's growing role in the international expansion of the cryptocurrency exchange, with Dubai's Virtual Assets Regulatory Authority (VARA) and ADGM's FSRA providing two distinct regulatory pathways for digital asset businesses.