Abu Dhabi: TECHz – News Desk
Coinbase has officially received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
This regulatory approval clears the cryptocurrency exchange to establish its international tokenization hub in the capital of the United Arab Emirates. Through the newly acquired FSP, Coinbase is authorized to arrange investment deals and provide specialized custody services, paving the way for the launch of blockchain-based tokenized securities. The initiative fundamentally reimagines how global investors access traditional financial markets. Instead of relying on legacy brokerages or correspondent banking relationships, investors will be able to hold digital tokens representing traditional shares directly in a crypto wallet.
These digital securities will be issued within the ADGM and fully backed 1:1 by actual underlying shares held in trust. Verified token holders will receive standard economic benefits, including dividend distributions and potential voting rights depending on the specific terms of the offering. Regulatory filings indicate the hub’s first anticipated product will be Apple CB Certificates. The FSRA recently approved a prospectus for these digital certificates, which will be issued by Coinbase Onchain SPV Ltd. – a special purpose vehicle established in the ADGM – and will represent beneficial interests in Apple common stock.
Abu Dhabi has been a pioneer in digital asset oversight, having established one of the world’s first comprehensive virtual asset frameworks in 2018. Brett Tejpaul, Co-CEO of Coinbase Institutional, emphasized the unique nature of this approval, noting that no major financial center has yet built a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets. To harmonize the borderless nature of decentralized finance with strict regulatory standards, the system includes built-in compliance guardrails. Every token transfer will be subject to ongoing sanctions screening, and Coinbase retains the technical capability to freeze or seize assets at the wallet level when mandated by law.
Coinbase’s strategic move in Abu Dhabi addresses a massive gap in the legacy financial system. According to the company, an estimated 4 billion people currently lack meaningful access to global capital markets due to high participation costs and systemic friction. By operating outside the United States and limiting these products to eligible international jurisdictions, this tokenization hub serves as a foundational step toward bringing institutional-grade securities to anyone with a compatible digital wallet.
