Coinbase secures Abu Dhabi license to build global tokenization hub

The Financial Services Regulatory Authority granted the license, allowing Coinbase to move beyond basic cryptocurrency trading into the realm of on-chain capital markets. Under this framework, the company will register and issue securities backed by underlying shares, with dividend payments reinvested automatically. While the platform aims to integrate these assets into blockchain wallets, transactions will remain subject to strict compliance, including sanctions screening and the ability for the exchange to freeze assets when required.

Brett Tejpaul, co-CEO of Coinbase Institutional, noted that the move capitalizes on Abu Dhabi’s unique regulatory environment, which treats tokenized equities as both securities and blockchain-native assets. This initiative complements the company's broader UAE strategy, which positions Abu Dhabi as a hub for tokenization while utilizing Dubai as a center for international derivatives. Although the company has not yet disclosed which specific shares will be offered or when the initial launch will occur, the model aims to bypass traditional brokerage requirements by allowing users to manage investments directly through compatible blockchain wallets.

This expansion does not extend to the United States, where any offering of tokenized shares remains subject to SEC oversight. Coinbase continues to navigate regulatory discussions domestically, even as competitors like Dinari have already begun offering tokenized S&P 500 stocks to eligible American investors. Meanwhile, Coinbase is separately rolling out U.S. equity access for UK customers, further diversifying its international product suite to include commodities and foreign exchange alongside its digital-asset core.