Author: Coinbase Blog

Translator: Deep Tide TechFlow

Deep Tide Introduction: Coinbase has obtained a financial services license in Abu Dhabi and is preparing to bring traditional assets like stocks onto the blockchain. This means that the 4 billion people globally who have been excluded from traditional capital markets will only need a wallet to participate in investment in the future. For practitioners focused on the tokenization of real-world assets, this is an important signal of the implementation of regulatory frameworks, which may trigger a competition among exchanges to capture the compliant high ground in the Middle East.

Coinbase establishes a tokenization center in Abu Dhabi, having obtained financial services regulatory authority permission

Coinbase has received a financial services permission from the financial services regulatory authority and will establish its international tokenization center in the Abu Dhabi Global Market. The Abu Dhabi Global Market serves as an international financial center in the capital of the UAE. This is the most important step we have taken to build a more open and accessible global financial system.

Coinbase has obtained a license from the Abu Dhabi Global Market financial services regulatory authority, allowing it to conduct investment transaction arrangements and provide custody services to promote our launch of tokenized securities. This is the foundation for establishing the international tokenization center in Abu Dhabi.

The importance of this matter: globally, 4 billion people are unable to access capital markets. It is not because they lack money, but because this system has never been designed for them. Investment opportunities are out of reach, and participation costs are too high. This license is the first step we are taking to change this situation.

Tokenized securities registered and issued in the Abu Dhabi Global Market are fully backed by underlying stocks and are supervised by the financial services regulatory authority. Verified token holders enjoy full shareholder rights, including dividends and voting rights.

Investors do not need a securities account or interbank relationships; they only need a wallet. Every transfer is subject to ongoing sanction screening, and we can freeze or seize assets at the wallet level when necessary, therefore DeFi and regulatory compliance are not in conflict.

Brett Tejpaul, Co-CEO of Coinbase Institutional, stated: "The Abu Dhabi Global Market launched one of the world's first regulatory frameworks for virtual assets in 2018. This reflects a real institutional commitment to implementing innovation-led regulations with the rigor demanded by global financial markets. No major financial center has yet established such a framework that treats tokenized stocks as securities, blockchain-native tokens, and DeFi composable assets simultaneously."

Arvind Ramamurthy, Chief Market Development Officer at the Abu Dhabi Global Market, stated: "Coinbase establishing its international tokenization center in the Abu Dhabi Global Market strongly demonstrates Abu Dhabi's growing role in shaping the future of global finance. It reflects the strength of the Abu Dhabi Global Market's progressive, robust, and internationally aligned regulatory framework, which continues to provide confidence to leading global institutions, enabling them to develop responsible, blockchain-based financial services at scale. As tokenization increasingly becomes a crucial part of capital market infrastructure, the Abu Dhabi Global Market will continue to support innovations that enhance market access, transparency, and investor confidence, while adhering to the highest standards of regulatory oversight."

This release is part of our broader commitment to the UAE. Through our investments in Abu Dhabi and Dubai, Coinbase is building two of the most ambitious global operations outside the United States: a tokenized securities and on-chain capital markets center, as well as a global derivatives center. Together, they reflect our confidence in the UAE as the home for next-generation financial infrastructure.

The financial services permission from the financial services regulatory authority provides us with a regulatory foundation, infrastructure, and suitable partners, allowing capital markets to reach those who need them the most. The next frontier of global finance is on-chain. We are building it.

1 Digital securities are subject to certain attribution conditions, the definitions of which can be found in the prospectus for digital securities. Only attributed holders can exercise certain rights, including voting rights on the underlying assets. Dividends will be automatically reinvested, and all holders may benefit economically from this feature of digital securities, but only attributed holders qualify for redemption rights.

2 To exercise certain rights of digital securities, namely redemption rights, attributed holders must have a suitable securities or bank account to be able to receive redemption funds. However, trading in digital securities alone does not require opening such a securities or bank account.