Coinbase Abu Dhabi Tokenization Hub Approval

Coinbase received Financial Services Permission from the United Arab Emirates — Financial Services Regulatory Authority of Abu Dhabi Global Market, allowing it to arrange investment deals and provide custody for tokenized securities. The company plans to make Abu Dhabi its international tokenization hub outside the United States, issuing tokenized securities backed by underlying shares under FSRA supervision. Eligible holders may receive shareholder rights, including dividends and voting, subject to vesting conditions. Transfers will undergo sanctions screening, and Coinbase can freeze or seize assets at the wallet level. The approval builds on Coinbase's existing UAE presence, including its United Arab Emirates — Dubai derivatives business and Karlsruhe Accurate Arithmetic. Coinbase has issued its first tokenized-security certificate representing Apple shares as an early demonstration. The move aligns with broader industry trends, as other institutions like BNY and Dinari also pursue tokenization. The approval does not authorize offering these securities in the U.S., which remains subject to SEC oversight.