Coinbase has obtained a financial services license from Abu Dhabi Global Market’s regulator, granting it authority to arrange investment deals and provide custody for tokenized securities. The license, issued by the Financial Services Regulatory Authority, applies within Abu Dhabi Global Market’s free zone and enables the company to operate a tokenization hub outside the United States, with Dubai designated for derivatives activities. Tokenized securities will represent underlying shares and will grant holders dividend and voting rights as outlined in the relevant prospectus, with dividend payments automatically reinvested. Access to voting and redemption rights may be subject to vesting requirements. The initial securities to be tokenized, the blockchain networks to be used, and the launch date have not been disclosed, and eligibility criteria for investors have not been specified. Investors will use a blockchain wallet rather than a traditional brokerage account; transactions will remain subject to compliance screening and sanctions checks, and Coinbase retains the ability to freeze or seize assets when regulatory requirements dictate. Brett Tejpaul, co‑CEO of Coinbase Institutional, said that Abu Dhabi established one of the first regulatory frameworks for virtual assets in 2018 and continues to develop rules for blockchain‑based financial products, noting that no major financial center has yet created a system that treats tokenized equities simultaneously as securities, blockchain tokens, and DeFi‑composable assets. Arvind Ramamurthy, ADGM chief market development officer, described the hub as an endorsement of Abu Dhabi’s role in blockchain finance and said the center will support products that enhance market access and transparency while maintaining regulatory oversight. The model follows Coinbase’s earlier 1:1‑backed tokenized‑stock initiatives on its Ethereum layer‑2 network Base. Competition includes Dinari, which in August introduced tokenized S&P 500 stocks for U.S. investors using self‑custody wallets, and Coinbase’s UK offering that began on Aug. 6, providing access to nearly 4,000 U.S. equities for professional clients. The Abu Dhabi license does not permit Coinbase to offer the securities to U.S. investors, who remain subject to U.S. securities laws, and discussions with the SEC continue regarding potential exemption frameworks for blockchain‑based securities.