TLDR
- Coinbase received regulatory approval in Abu Dhabi to launch a tokenized securities hub
- The approval lets Coinbase arrange investment deals and provide custody for share-backed tokens
- The hub builds on Coinbase’s existing Project Diamond platform in the region
- Other firms like Ondo Finance and BNY already offer tokenized products in Abu Dhabi
- Analysts expect tokenized assets across the Gulf region to reach close to $500 billion by 2030
Coinbase has received regulatory permission in Abu Dhabi to launch an international hub for tokenized securities. The approval allows the exchange to arrange investment deals and provide custody services for the new products.
The Financial Services Regulatory Authority of Abu Dhabi Global Market granted Coinbase a Financial Services Permission. This places the company inside ADGM’s regulated financial system.
The securities issued through this framework will be backed by underlying shares. They will be supervised directly by the FSRA.
Investors who hold verified accounts will receive economic rights tied to the assets. Some shareholder rights, including voting, will depend on vesting conditions attached to the tokens.
People will be able to hold these products in digital wallets. They won’t need a traditional brokerage account or a banking relationship to make transactions.
Coinbase said all transfers will remain subject to sanctions screening. Assets can be frozen or seized at the wallet level if required.
Coinbase announced the approval on August 11. The company called it one of the biggest steps toward building an open financial system.
Project Diamond Laid the Groundwork
Abu Dhabi was already part of Coinbase’s tokenization plans before this approval. The company launched Project Diamond as a platform for issuing blockchain-based financial instruments.
Project Diamond received in-principle approval from ADGM regulators. Its first product was a short-term discount note issued in USDC on Coinbase’s Base blockchain.
In December 2024, the platform added Chainlink’s Cross-Chain Interoperability Protocol. This gave institutions cross-chain connectivity and verified data for tokenized assets.
Coinbase Institutional co-CEO Brett Tejpaul said ADGM’s 2018 virtual asset framework was a key reason for choosing the jurisdiction. He said no major financial center has built a framework treating tokenized equities as securities, blockchain tokens and DeFi assets at the same time.
Other Firms Already Active in Abu Dhabi
Coinbase isn’t the first company to offer blockchain-based investment products in Abu Dhabi. Ondo Finance received approval in March for tokenized U.S. stocks and exchange-traded funds.
Ondo’s products were structured as equity-linked notes. They gave investors exposure to companies including Amazon, Apple, Microsoft and Tesla.
BNY launched Bitcoin and Ether custody services in ADGM in May. The bank worked with Finstreet Limited and the ADI Foundation and plans to support tokenized assets and stablecoins.
Coinbase has already rolled out tokenized equities outside Abu Dhabi. In June, it launched tokenized shares linked to SpaceX, Nvidia, Google, Strategy and Bitmine, each backed one to one.
The Abu Dhabi hub is one part of a wider expansion across the United Arab Emirates. Coinbase is building its derivatives business separately from Dubai.
Consulting firm Kearney and tokenization company Ctrl Alt estimate tokenized real world assets across the Gulf Cooperation Council could reach close to $500 billion by 2030. Private markets, investment funds and bank deposits are expected to make up a large share of that total.
Abu Dhabi based company KAIO raised $8 million in April from investors including Tether and Nomura-backed Laser Digital. KAIO has worked on bringing investment products from BlackRock, Brevan Howard and Hamilton Lane onto public blockchains.
The post Coinbase Gets Abu Dhabi Approval for Tokenized Securities appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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