Coinbase wins FSRA approval for an Abu Dhabi tokenization hub, letting eligible investors hold tokenized stocks and bonds via digital wallets without a brokerage account.
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Coinbase has secured a license to build its international tokenization hub in Abu Dhabi, moving a step closer to putting traditional stocks and bonds on blockchain networks outside the U.S.
The Financial Services Regulatory Authority of Abu Dhabi Global Market granted the exchange Financial Services Permission. The license lets Coinbase arrange investment deals and provide custody for tokenized securities. Eligible investors will be able to hold and transfer these digital assets through wallets, without a traditional brokerage account, Coinbase said.
Coinbase plans to issue digital securities through ADGM that are backed by underlying shares. Token holders can receive dividends and voting rights, subject to conditions in each security's prospectus. Some rights are tied to vesting schedules – only vested holders may vote or redeem certain positions.
The model does not treat these tokens like unrestricted crypto. Coinbase said transfers will be screened for sanctions compliance. Where local law requires it, assets can be frozen or seized at the wallet level.
Investors do not need a brokerage or bank account to transact in the digital securities, Coinbase said. But redemption rights may require a vested holder to have a suitable account capable of receiving the proceeds.
Coinbase's Abu Dhabi hub is part of a broader UAE expansion. The company is building two major overseas businesses: the tokenization platform in Abu Dhabi and a global derivatives hub elsewhere in the UAE.
Brett Tejpaul, co-CEO of Coinbase Institutional, said ADGM's early virtual-asset rules and institutional approach made it a strong location for the project. ADGM Chief Market Development Officer Arvind Ramamurthy said the development strengthens Abu Dhabi's position in blockchain-based financial infrastructure.
Coinbase said roughly 4 billion people globally lack easy access to capital markets because of high costs and limited financial services. The company sees tokenization as a way to reduce those barriers by putting financial assets directly on blockchain networks.
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