Coinbase has secured regulatory approval in Abu Dhabi to build an international hub for tokenized securities, giving the crypto exchange a supervised base for bringing traditional stocks onto blockchain networks outside the United States.
Key Takeaways
Coinbase won an Aug. 11 ADGM license to arrange and custody tokenized securities.Apple’s 1st Coinbase certificate shows how regulated stocks could move onchain.Coinbase targets non-U.S. markets as its 2 UAE hubs expand stocks and derivatives.Tokenization converts ownership rights in traditional assets, such as stocks, into digital tokens that can move across blockchain networks. Coinbase’s planned securities would remain regulated financial instruments while gaining some of the portability associated with crypto assets.
Under the structure, securities are issued in ADGM and backed by underlying shares held in trust. Verified token holders can receive economic benefits tied to those shares, including dividends, while voting rights may also be available depending on conditions in each offering’s prospectus.
Coinbase has already started building the machinery behind the plan. The FSRA approved a prospectus in early August for Apple CB Certificates issued by Coinbase Onchain SPV Ltd., an ADGM special purpose vehicle created in June.
A Wallet Could Replace the Brokerage AccountOne of the biggest changes involves how investors access these tokenized securities. Eligible users can participate through digital wallets rather than relying exclusively on traditional brokerage accounts and correspondent banking relationships.
That flexibility does not mean the system is permissionless. Transfers remain subject to sanctions screening, and regulators can require assets to be frozen or seized at the wallet level. The products are also restricted to eligible jurisdictions outside the U.S.
Abu Dhabi Becomes Coinbase’s Tokenization BaseADGM has spent years courting digital asset businesses. The financial center introduced a comprehensive virtual asset framework in 2018 and has continued developing regulations aimed at bringing institutional blockchain activity inside established financial rules.
Coinbase’s regional work also extends beyond equities. Its Project Diamond platform previously enabled institutions to issue and trade digital debt instruments on Base, while Mubadala Capital tokenized a private-markets strategy in July that attracted roughly $75 million in onchain assets.
