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Coinbase gets Abu Dhabi nod to run tokenized securities hub
The FSRA permission covers arranging investment deals and providing custody, with sanctions screening on every transfer and asset freezes possible at the wallet level where required.
Coinbase said it received a Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market to build an international tokenization hub for tokenized securities, including clearing the platform and offering custody ahead of a launch. The approval covers tokenized securities registered and issued in ADGM that are backed by underlying shares under FSRA supervision, with verified token holders receiving shareholder rights such as dividends and voting, Coinbase said. The company also said investors would use a wallet rather than a brokerage account or a correspondent banking relationship, and that every transfer is subject to ongoing sanctions screening.
Coinbase said it can freeze or seize assets at the wallet level where required, and it did not provide a launch date or name any listed equities. In addition, the announcement said only "Vested Holders" may exercise voting rights over the underlying shares or qualify for redemption rights, while dividends are set to be automatically reinvested rather than paid out.
Coinbase said its permission is a first step toward widening access to capital markets, and noted it began working through ADGM in December 2023 as part of Project Diamond, an institutional smart contract platform built on Base that would enter the FSRA's RegLab sandbox. The tokenization product is listed as "coming soon" and the permission is held by an entity not identified in the announcement, according to the company.