Coinbase Chooses Abu Dhabi to Anchor Its Global Tokenization Drive

Coinbase wins Abu Dhabi permission for tokenized securities

Coinbase announced on 11 August 2026 that it secured regulatory approval to build an international tokenization hub in Abu Dhabi. The company received Financial Services Permission from the Financial Services Regulatory Authority (FSRA), the market regulator of the Abu Dhabi Global Market (ADGM). ADGM is the financial center of the United Arab Emirates capital, and the approval lets Coinbase base a dedicated tokenized-securities operation inside that jurisdiction. Coinbase described the step as its most significant move yet toward building infrastructure for a more open global financial system.

The license covers investment dealing and token custody

The permission allows Coinbase to arrange investment deals and provide custody for tokenized securities within ADGM. That combination lets the exchange both intermediate trades and hold the assets under one regulated license. The scope covers investment-dealing intermediation and custody services, the two functions needed to run an offshore securities-token venue. Coinbase Institutional, the company's unit for professional and corporate clients, leads the effort. The firm also runs a separate derivatives business in Dubai, giving it two regulated footholds in the UAE.

Tokens will be backed by underlying company shares

Coinbase plans to offer digital securities backed by real shares, with tokens registered and issued under FSRA oversight. The company intends to register and issue the tokens directly in ADGM, keeping issuance inside the regulator's remit. Each token would be fully backed by actual shares, so holders gain rights tied to the underlying stock, such as dividends and voting. The company frames the model as treating tokenized equities as securities, blockchain-native tokens, and decentralized-finance assets at the same time. That approach aims to let the same instrument trade on regulated venues and move across blockchain networks.

"No major financial center has yet built a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets.", 11 August 2026. — Brett Tejpaul, Co-CEO, Coinbase Institutional

Ethereum price at the time of publication

Much tokenization activity settles on Ethereum-based networks. Ether (ETH), the second-largest cryptocurrency, traded at $1,885.03 at the time of publication, down 0.6% over the past 24 hours against the previous close (CoinPaprika, 11 August 2026). Its market capitalization stood near $227 billion. The token remains about 62% below its August 2025 record high, underscoring how far the market sits from its peak even as institutional tokenization efforts expand.

Abu Dhabi expands its regulated tokenization push

The move comes as tokenization gains traction across traditional finance. Global asset managers and banks have placed funds, bonds, private credit, and stocks on blockchain rails, aiming to settle trades faster and move securities around the clock. Supporters see the technology as a way to make securities easier to transfer and to settle trades near instantly. Coinbase has worked toward this model for years: its Project Diamond platform, launched in 2023, lets institutions create and trade digital debt instruments. That platform gained in-principle approval to develop financial technology services in ADGM's regulatory sandbox and executed its first debt instrument there. Abu Dhabi has approved several tokenization ventures over the past year, positioning ADGM as a regulated base for the technology. Coinbase expects to build out its securities-token offering under that framework.