Coinbase Secures Abu Dhabi Approval for Tokenized Securities Hub

Coinbase has secured regulatory approval in Abu Dhabi to establish an international hub for tokenized securities, marking a significant expansion of the cryptocurrency exchange's institutional services in the Middle East. The Financial Services Regulatory Authority of Abu Dhabi Global Market granted Coinbase a Financial Services Permission, allowing the company to arrange investment deals and provide custody for digital securities backed by underlying shares.

The approval, announced by Coinbase on August 11, enables the company to operate within ADGM's regulated financial framework. Verified holders of these tokenized securities will receive economic rights linked to the assets, though certain shareholder rights, such as voting, may depend on specific conditions attached to each digital security. The structure allows investors to hold the products in digital wallets without opening a traditional brokerage account or relying on correspondent banking relationships for transactions. Coinbase will apply sanctions screening to transfers, and assets can be frozen or seized at the wallet level when required by legal or regulatory obligations.

The Abu Dhabi hub builds on Coinbase's...