Overview
- Abu Dhabi’s Financial Services Regulatory Authority has granted Coinbase Financial Services Permission to operate an international tokenization hub that can arrange investment transactions and provide custody for tokenized securities.
- The digital securities will be issued under ADGM rules and be backed 1:1 by underlying shares, giving verified holders economic rights while some shareholder privileges such as voting may depend on vesting terms.
- Investors will be able to hold these products in on‑chain wallets without opening traditional brokerage accounts, with transfers subject to sanctions checks and wallets capable of being frozen or seized to meet legal obligations.
- The approval extends Coinbase’s Project Diamond work from institutional digital debt to regulated equity‑linked securities and forms part of a broader UAE strategy that places tokenization in Abu Dhabi and derivatives in Dubai.
- Regional momentum and infrastructure—including other ADGM licensees, bank custody offerings and consultant estimates of up to roughly $500 billion of GCC assets that could be tokenized by 2030—frame why the permission may speed institutional issuance and new market plumbing.