Coinbase Achieves a First in Abu Dhabi: Global Hub Established to Bring Traditional Finance to Blockchain
Coinbase has taken a strategic step toward bringing traditional securities together with blockchain technology by establishing a global hub for tokenized assets in Abu Dhabi.
Coinbase (COIN), one of the world’s largest cryptocurrency exchanges, has selected Abu Dhabi as the center for its tokenized asset operations in line with its global expansion goals. The company announced that it has received the required Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) within the Abu Dhabi Global Market (ADGM). Thanks to this license, the exchange is authorized to arrange investment deals and provide custody services for tokenized securities.
Under this new regulatory framework, the exchange plans to offer digital securities backed by underlying equities. These tokens, to be issued in Abu Dhabi, will be registered directly under FSRA supervision. Tokenization, the process of moving funds, bonds, and private credit onto the blockchain in the traditional financial world, enables assets to be transferred 24/7 and transactions to be settled instantly.
Tokenized Assets and DeFi Integration
Brett Tejpaul, Co-CEO of Coinbase Institutional, stated that the new regulatory environment offered by Abu Dhabi is unique. Tejpaul emphasized the importance of the region, saying, “No major financial center has yet created a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-compatible assets.”
Coinbase’s presence in the United Arab Emirates is not limited to this license. The company previously launched the Project Diamond initiative for institutional investors and signed strategic partnerships with Abu Dhabi’s sovereign wealth fund, Mubadala Capital. This new operations hub in Abu Dhabi will work in coordination with the exchange’s existing derivatives unit in Dubai, becoming one of the company’s strongest strongholds outside the U.S. This will allow tokenized assets to be traded securely on Coinbase’s Ethereum-based network.