Coinbase picks Abu Dhabi for its global tokenized asset push
Infrastructure
Coinbase has secured Financial Services Permission from the Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority to establish an international hub for tokenized assets. This regulatory approval allows the exchange to arrange investment deals and provide custody for digital securities backed by underlying shares. By operating within the ADGM framework, Coinbase aims to bridge traditional securities with blockchain technology outside of the United States. This expansion builds upon the company's existing UAE footprint, including the Project Diamond initiative on the Base blockchain. The move reflects a broader industry trend where major financial institutions are increasingly leveraging blockchain rails to enable 24/7 trading and near-instant settlement. Abu Dhabi continues to position itself as a critical jurisdiction for this sector by offering a specialized regulatory environment for virtual assets. Coinbase intends to use this base to offer institutional investors new ways to utilize tokenized equities as collateral in onchain markets.
Key points
- ▸Coinbase received FSRA permission in ADGM to custody and arrange tokenized security deals.
- ▸The hub will facilitate the issuance of digital securities backed by traditional underlying shares.
- ▸Coinbase previously launched Project Diamond on Base to issue digital debt instruments.
- ▸Mubadala Capital recently tokenized a private-market strategy on Base using infrastructure provider KAIO.
Background
Abu Dhabi Global Market (ADGM) is an international financial center in the UAE that operates under its own legal framework based on English Common Law. It is known for being one of the first jurisdictions globally to implement a comprehensive regulatory regime for virtual assets, attracting various blockchain and fintech firms. Coinbase is a publicly traded cryptocurrency exchange that provides a platform for buying, selling, and storing digital assets, with a growing institutional division focused on RWA tokenization.
Relevance
8.5/10