Abu Dhabi has been quietly turning itself into one of the world’s proving grounds for digital assets, and last week’s announcement from Coinbase confirmed just how far that ambition has traveled. The crypto exchange giant said it is establishing an international tokenization hub inside Abu Dhabi Global Market, a move that industry figures describe as the clearest sign yet of UAE tokenization leadership taking shape on a global scale. It’s a signal that the emirate wants to be more than a regional experiment — it wants to be where the world’s financial system goes when it decides to move onto blockchain.
Key takeaways
- Coinbase has been granted an ADGM license to arrange investment deals and provide custody for tokenized securities as part of its new international tokenization hub.
- ADGM built one of the world’s first comprehensive virtual asset regulatory frameworks back in 2018 and now hosts over 20 firms with active virtual asset licences.
- Binance, which received its ADGM license in December 2025, posted $4.74 trillion in trading volume in June 2026 — 39.5% of volume across the 11 exchanges tracked by CoinMarketCap.
- SettleMint and ADI Foundation are building tokenization infrastructure on ADI Chain, which secured a $50 million strategic investment in July for expansion across the Middle East, Africa and Asia.
- Consulting firm Kearney projects GCC tokenized assets could reach $500 billion by 2030, with private markets alone worth an estimated $154 billion.
Coinbase Launches International Tokenization Hub in Abu Dhabi
Coinbase’s decision to plant its international tokenization hub in Abu Dhabi Global Market marks a turning point for how global exchanges view the emirate’s regulatory standing. The company has obtained authorization to facilitate investment transactions and deliver tokenized securities safekeeping services, giving it the legal footing to serve institutional clients who need their digital assets safely held and managed on-chain.
Custody might sound like a technical detail, but it’s the piece that makes or breaks institutional trust. Large asset managers won’t touch tokenized securities without confidence that ownership records are secure and properly regulated. By securing that license, Coinbase is positioning ADGM not just as a friendly jurisdiction, but as a base for issuing and managing tokenized assets that could serve markets well beyond the Gulf.
Licensing Milestone for Custody and Investment Services
Adam Popat, CEO of SettleMint, a UAE-based firm that helps regulated institutions design, issue and manage digital assets across their full lifecycle, called the move a defining moment for the industry. “Coinbase locating its international tokenisation hub in ADGM is the kind of licence that turns tokenized securities from a pilot into a market,” Popat told Fortune. He added that when “a listed U.S. exchange chooses Abu Dhabi for that work, it tells issuers and allocators that the UAE now has the regulatory depth to host global issuance, not only regional experiments.”
ADGM’s Regulatory Framework Fuels Crypto Ecosystem Growth
ADGM’s head start on virtual asset regulation is what makes this moment possible. The financial centre introduced one of the world’s first comprehensive virtual asset regulatory frameworks back in 2018, long before most jurisdictions had settled on how to treat crypto at all. That early groundwork has steadily pulled in exchanges, custodians and tokenization platforms looking for a regulated home base.
Tokenization itself has been gathering pace across traditional finance worldwide, with major banks and asset managers pushing funds, bonds, private credit and equities onto blockchain rails. Abu Dhabi has positioned itself squarely in the middle of that shift, treating it less as a side project and more as a rehearsal for how global markets could eventually operate.
Binance and the Scale of ADGM’s Virtual Asset Licensing
The scale of ADGM’s crypto ecosystem tells its own story. In December 2025, the centre granted a license to Binance, the world’s largest cryptocurrency exchange by trading volume. According to CoinMarketCap’s June 2026 data, Binance’s the volume of trades reached $4.74 trillion, representing 39.5% of the total trading activity on the 11 exchanges the platform tracks — well ahead of any competitor. Today, more than 20 firms hold active virtual asset licences in ADGM, a figure that underscores just how crowded and competitive the emirate’s digital asset licensing landscape has become.
Strategic Partnerships Deepen Institutional Adoption
Licenses alone don’t build a market — infrastructure and partnerships do the heavy lifting. That’s where firms like SettleMint come in. In May, the company signed a strategic partnership with ADI Foundation to build a digital asset lifecycle infrastructure on ADI Chain, the Foundation’s institutional blockchain, supporting the tokenization of securities under ADGM’s regulatory umbrella. The partnership is aimed squarely at a persistent problem: institutions need coordinated, regulated infrastructure that links issuance, trading, settlement and custody within one recognized framework, rather than piecing it together across disconnected systems.
ADI Foundation, an Abu Dhabi-based organization, has set itself the goal of bringing one billion people into the digital economy by 2030. Popat described it as “one of the organizations coming out of Abu Dhabi, which is building a very ambitious digital asset ecosystem that encompasses a lot of different financial institutions and corporates in the emirate,” adding that SettleMint was “delighted to have been chosen by them as their lead tokenization and digital asset lifecycle partner.”
That ambition attracted serious capital. During July, the ADI Foundation revealed that ADI Chain had obtained a $50 million strategic investment, a milestone the Foundation described as major for one of the region’s fastest-growing institutional blockchain ecosystems. The funding is expected to fuel expansion across the Middle East, Africa and Asia, regions where governments and financial institutions are increasingly exploring blockchain to modernize payments and digitize public services.
The broader ecosystem is also rolling out DDSC, a stablecoin pegged to the dirham and created via partnership among First Abu Dhabi Bank, International Holding Company and Sirius International Holding — another sign that the emirate’s digital asset push extends well beyond exchanges and custody licenses.
Sovereign Wealth Money Enters Tokenization
The UAE’s sovereign wealth funds have started putting real capital behind the trend. Last month, Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth fund, converted one of its alternative investment portfolios into tokenized form via KAIO, a UAE-based blockchain infrastructure operator networks including Base — with Coinbase itself taking an exposure to the fund. That kind of institutional buy-in matters because it shows sovereign capital is willing to treat tokenized structures as a legitimate part of its portfolio, not just a pilot project.
Regional Tokenization Race Across the Gulf
Abu Dhabi isn’t operating in isolation. Saudi Arabia executed its inaugural blockchain-based sovereign tokenized property deed transaction in early 2026, whereas the Qatar Financial Centre is moving to enable real estate tokenization of its own. Popat noted that UAE banks are already in active discussions with SettleMint around tokenizing equities, funds, bonds and deposits, and that tokenization of gold is “a very active conversation” the company is having with several partners.
Why does all this matter beyond the headlines? Because the numbers suggest the Gulf isn’t just dabbling — it’s building toward a market with real scale. In a report published in January this year, global consulting firm Kearney estimated that by 2030, close to $500 billion in assets across the GCC could be represented on blockchain, spanning private markets, funds, bank deposits, public equities, real estate and commodities. Of that total, Kearney believes private markets represent the single largest opportunity, projecting a market size of $154 billion by 2030.
Popat pointed to a specific mix of factors driving the region’s pace: national-scale programs to digitize entire economies, deep capital pools, a growing talent base, and a regulatory environment that moves faster than in many Western markets. “That’s a set of ingredients which allows the digital asset agenda to move at pace here,” he said, adding that SettleMint’s client base and partnerships are now “largely driven through this region.”
What sets the UAE apart isn’t any single license or platform — it’s the way regulation, sovereign capital and private infrastructure are moving in the same direction at the same time. Kearney’s own framing captures the stakes: these asset classes point to a market with significant headroom for growth, one capable of reshaping how capital is issued, traded and allocated across the Gulf and, potentially, well beyond it.
FAQ
Why did Coinbase choose Abu Dhabi Global Market for its tokenization hub?
ADGM offers a comprehensive regulatory framework and a license to arrange investments and custody services for tokenized securities, attracting global firms like Coinbase.
What role does ADGM play in the UAE’s digital asset ecosystem?
ADGM introduced one of the world’s first virtual asset regulatory frameworks in 2018 and hosts over 20 licensed virtual asset firms including Binance and Coinbase.
How are sovereign wealth funds in the UAE involved in tokenization?
Mubadala Capital has tokenized private-market investment strategies on blockchain with infrastructure like KAIO and has connections to Coinbase.
What is the projected size of the tokenized asset market in the GCC by 2030?
Consulting firm Kearney estimates tokenized assets in the GCC could reach $500 billion by 2030, with private markets representing $154 billion.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
