FSRA Clears Coinbase for Custody and Investment Dealing @coinbase has received Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global
@coinbase has received Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), giving the company regulatory clearance to establish an international tokenization hub in Abu Dhabi and permitting it to arrange investment deals and provide custody services.
Coinbase describes the move as "the most significant step" it has taken toward building infrastructure for a more open and accessible global financial system.
The approval makes ADGM the first live jurisdiction in which a major exchange can offer regulated stocks that are simultaneously securities-law-compliant, blockchain-native, and usable as collateral in decentralized finance protocols.
Tokenization converts ownership rights in traditional assets, such as stocks, into digital tokens that can move across blockchain networks, and Coinbase's planned securities would remain regulated financial instruments while gaining some of the portability associated with crypto assets.
The tokenized securities will be registered and issued in ADGM and fully backed by the underlying shares under FSRA supervision.Eligible token holders will receive shareholder rights, including voting and economic benefits such as dividends, subject to the vesting and other conditions set out in the relevant prospectus.
Coinbase said the structure is designed to combine the legal protection of traditional securities with the accessibility and composability of blockchain-based assets.Instead of relying entirely on traditional brokerage systems, investors will be able to use digital wallets to access and transfer eligible tokenized securities. The products will be available only in eligible jurisdictions outside the United States.
ADGM itself welcomed the development. Arvind Ramamurthy, Chief Market Development Officer at ADGM, said the partnership reflects "the strength of ADGM's progressive, robust and internationally aligned regulatory framework," which continues to provide global institutions with confidence to develop blockchain-enabled financial services at scale.
Coinbase pointed to access as the central motivation, noting that 4 billion people worldwide cannot access capital markets. The Abu Dhabi hub is intended to change that by putting global securities on-chain and within reach of any eligible wallet holder.
Sources:Coinbase Blog: Coinbase establishes its tokenization hub in Abu DhabiCrypto Briefing: Coinbase wins Abu Dhabi approval to establish international tokenization hub in ADGMCrypto Times: Coinbase Gets Abu Dhabi FSRA License to Launch Tokenized Securities Hub
