CoinDesk
Coinbase is setting up an international tokenization hub in Abu Dhabi after securing Financial Services Permission from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The license lets the exchange arrange investment deals and provide custody for tokenized securities issued under ADGM oversight. The hub sits alongside Coinbase's derivatives business in Dubai, deepening the company's UAE footprint as the emirate positions itself as a regulated base for bringing traditional securities onchain outside the US.
Why it matters
The structural angle is what Brett Tejpaul, co-CEO of Coinbase Institutional, called out: ADGM treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets. That three-pillar framing is rare globally, and is the wedge Coinbase will use to argue tokenized shares from Abu Dhabi can settle near-instantly, trade around the clock, and ultimately serve as onchain collateral. ADGM has run a virtual asset regulatory framework since 2018, longer than most peer jurisdictions, which gave Coinbase a regime to slot into rather than negotiate from scratch.
Market impact
Mubadala Capital, the asset management arm of Abu Dhabi's sovereign wealth fund, tokenized one of its private-market investment strategies on Base last month through UAE-based infrastructure provider KAIO, with Coinbase itself taking exposure to the fund. Coinbase's earlier Project Diamond, launched in 2023 on Base, already let institutions issue and trade digital debt instruments onchain. The Abu Dhabi license turns those pilots into a scaled, regulated product surface, giving institutional RWA builders a US alternative issuance venue just as global asset managers and banks push funds, bonds, private credit, and stocks onto blockchain rails. The structural test is whether tokens issued from Abu Dhabi actually flow into DeFi protocols or stay parked in Coinbase's institutional custody stack.
Frequently asked questions
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What license did Coinbase secure in Abu Dhabi?
Coinbase secured Financial Services Permission from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market, allowing it to arrange investment deals and custody tokenized securities issued under ADGM oversight.
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Why did Coinbase choose Abu Dhabi over other jurisdictions?
ADGM has run a virtual asset regulatory framework since 2018, and Coinbase Institutional co-CEO Brett Tejpaul argued its three-pillar treatment of tokenized equities as securities, onchain tokens, and DeFi-composable assets is globally rare.
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What kind of assets will Coinbase issue from Abu Dhabi?
Coinbase plans to issue and register digital securities backed by underlying shares under ADGM oversight, framing them simultaneously as securities, blockchain-native tokens, and DeFi-composable assets.
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How does this fit with Coinbase's existing UAE footprint?
The Abu Dhabi hub sits alongside Coinbase's derivatives business in Dubai and follows Project Diamond, launched in 2023 on Base, which let institutions issue and trade digital debt instruments onchain.
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How is Mubadala Capital connected to this move?
Mubadala Capital, the asset management arm of Abu Dhabi's sovereign wealth fund, tokenized one of its private-market strategies on Base last month through KAIO, with Coinbase itself taking exposure to the fund.
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