The Financial Services Regulatory Authority of the Abu Dhabi Global Market granted Coinbase permission to arrange investment deals and provide custody for digital securities. These assets, pegged to underlying shares, will be held in digital wallets, allowing investors to bypass traditional brokerage and correspondent banking requirements. While the system operates on the blockchain, Coinbase confirmed that transfers will remain subject to strict sanctions screening, with the ability to freeze or seize assets at the wallet level.
This expansion builds on the exchange’s existing Project Diamond, an institutional platform previously focused on blockchain-based debt instruments. By shifting from debt to equity-linked products, Coinbase aims to bridge the gap between traditional capital markets and decentralized finance. Brett Tejpaul, co-CEO of Coinbase Institutional, noted that Abu Dhabi’s 2018 virtual asset framework remains a primary driver for the company, as it uniquely treats tokenized equities as both securities and DeFi-composable assets.
The initiative aligns with broader regional growth, as firms like Ondo Finance and BNY have also expanded their digital asset operations within the same jurisdiction. Consulting firm Kearney projects that the market for tokenized real-world assets across the Gulf Cooperation Council could reach $500 billion by 2030. As Coinbase splits its international focus—centering tokenization in Abu Dhabi while developing its derivatives business in Dubai—the company positions itself to capture a significant share of this evolving financial infrastructure.
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