Coinbase Wins Abu Dhabi Approval to Launch Tokenized Securities Starting with Apple
Stocks
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has granted Coinbase a license to arrange investment deals and provide custody for tokenized securities. This regulatory milestone allows Coinbase to issue digital tokens representing traditional equities, starting with Apple CB Certificates issued by Coinbase Onchain SPV Ltd. These certificates provide beneficial interests in underlying Apple common stock held in trust, enabling verified token holders to receive economic benefits like dividends. By establishing ADGM as its international tokenization hub, Coinbase aims to facilitate faster settlement, continuous trading, and fractional ownership for global investors. While the products are currently limited to eligible jurisdictions outside the United States, the framework serves as a scalable model for future equity tokenization. This development underscores the growing trend of major crypto exchanges integrating traditional financial instruments into onchain environments. The initiative follows Coinbase's previous successful deployment of a $75 million onchain strategy with Mubadala Capital in the region.
Key points
- ▸ADGM's FSRA granted Coinbase permission to custody and arrange deals for tokenized securities.
- ▸Apple CB Certificates represent the first equity-backed tokens issued via Coinbase Onchain SPV Ltd.
- ▸Tokenized securities are restricted to eligible jurisdictions outside of the United States.
- ▸ADGM serves as the primary international hub for Coinbase's onchain capital market operations.
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 has established a specialized regulatory environment for virtual assets, allowing institutions to bridge traditional finance with blockchain technology through regulated special purpose vehicles.
Relevance
8.5/10