The Financial Services Permission granted by ADGM’s Financial Services Regulatory Authority gives the US-listed crypto exchange the regulatory foundation to develop tokenised investment products from the emirate. Coinbase plans to use Abu Dhabi as its principal international hub for bringing traditional securities onto blockchain networks outside the United States.
The move places tokenised securities at the centre of Coinbase’s international growth strategy. Assets issued under the framework will be backed by underlying shares, while verified token holders can receive shareholder rights including dividends and voting rights. The structure is designed to distinguish regulated tokenised securities from synthetic products that merely track the price of conventional shares.
Coinbase also intends to make blockchain wallets a central part of the investment process. Eligible investors could hold and transfer tokenised assets without relying on the conventional combination of brokerage accounts and correspondent banking arrangements. Transfers remain subject to sanctions screening, while controls allow assets to be frozen or seized at wallet level when legally required.
The Abu Dhabi operation strengthens Coinbase’s attempt to build what it describes as an integrated financial platform spanning cryptocurrencies, traditional securities, derivatives and other assets. Its expansion comes as crypto companies increasingly compete with established brokerages for investors seeking access to equities and other conventional instruments through blockchain infrastructure.
Tokenised equities have become one of the fastest-developing parts of digital finance. They represent shares or economic interests in shares through tokens recorded on blockchain networks. Supporters say the technology could enable round-the-clock trading, quicker settlement and lower transaction costs. The global value of tokenised public stocks available to retail investors has climbed above $6 billion after standing at only a few million dollars at the end of 2024.
Regulators and financial institutions, however, remain divided over how such products should operate. Some tokenised equities provide rights comparable with conventional share ownership, while others function more like derivatives and may not provide investors with voting rights, dividends or direct ownership. Concerns also include fragmented liquidity, custody arrangements and differing regulatory protections across jurisdictions.
Coinbase’s Abu Dhabi model seeks to address part of that uncertainty by placing issuance and custody under the ADGM regulatory framework. The company’s decision also reinforces Abu Dhabi’s push to establish itself as a centre for regulated digital assets, tokenised funds and institutional blockchain finance.
The emirate has been building a broader ecosystem around the sector. A tokenised private-markets strategy linked to Mubadala Capital was launched in July using infrastructure from Abu Dhabi-based KAIO across Base, Solana and Sui. The product attracted about $75 million in onchain assets at launch, while Coinbase took exposure to the fund on its own balance sheet.
That initiative followed earlier moves to place conventional investment products on blockchain rails in ADGM. Abu Dhabi has hosted tokenised Treasury products and attracted major cryptocurrency businesses under its financial-services regime, increasing competition with other financial centres seeking a role in the rapidly developing market for digital representations of real-world assets.
Coinbase is pursuing tokenisation internationally while regulatory changes in the United States could eventually open the domestic equities market to similar products. US regulators have been preparing mechanisms that could allow companies to test blockchain-based securities models, potentially bringing Coinbase, Robinhood, Kraken and other platforms into closer competition with established brokerage companies.
The company had previously identified tokenised equities as a strategic priority and sought regulatory clearance for such products in the United States. The Abu Dhabi licence gives it a regulated international route while those domestic rules continue to evolve.
Coinbase is simultaneously widening its conventional financial offerings elsewhere. Its UK operation has launched access to thousands of US equities, while the company is expanding derivatives products for professional investors. The combination illustrates how leading crypto platforms are increasingly moving beyond spot digital-asset trading towards businesses traditionally dominated by securities exchanges, custodians and brokers.
Arabian Post – Crypto News Network
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