Summary
Coinbase has designated the Abu Dhabi Global Market (ADGM) as its international tokenization hub after securing a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA). The approval allows Coinbase to arrange investment transactions and provide custody services — the regulatory foundation for introducing tokenized securities. The move builds on Project Diamond, an in-principle approval granted in December 2023, and follows a $75 million on-chain investment in a tokenized version of Mubadala Capital's private markets fund.
Key Facts
- Coinbase designated ADGM as its international tokenization hub
- Secured FSP from Abu Dhabi's FSRA
- FSP allows Coinbase to arrange investment transactions and provide custody services
- Plans to issue securities tokens backed by underlying equities with shareholder rights (dividends, voting)
- Eligible holders would use digital wallets, potentially removing the need for traditional brokerage accounts
- Compliance controls: transfers subject to sanctions screening; ability to freeze/seize assets at wallet level where required
- Builds on Project Diamond — FSRA in-principle approval from December 2023
- In July 2026, Coinbase invested ~$75M in blockchain-native version of Mubadala Capital's evergreen private markets fund
- First major US publicly traded company to use regulated tokenized assets for on-chain financial operations
- Complements Coinbase's existing derivatives operations in Dubai
- Tokenized equities available only in eligible jurisdictions outside the US
Why It Matters
Coinbase's Abu Dhabi tokenization hub marks a strategic bet that the UAE — and ADGM specifically — will become a center of gravity for regulated on-chain capital markets. By establishing a compliant, licensed infrastructure for creating, issuing and trading tokenized securities, Coinbase is positioning itself to lead the tokenization of real-world assets at institutional scale, especially as US crypto market structure remains unsettled. The $75 million investment in the tokenized Mubadala fund demonstrates Coinbase using its own balance sheet to validate regulated tokenized assets, and signals the growing convergence of traditional private markets with blockchain rails. This is infrastructure and regulatory positioning — building pipes rather than launching tokens — reflecting a broader institutionalization of tokenization projected to reach trillions of dollars by the early 2030s.