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first_img Coinbase obtains ADGM license to build a tokenized securities hub

The cryptocurrency exchange platform Coinbase has obtained a Financial Services License (FSP) issued by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This license allows it to arrange investment transactions and provide custody for tokenized securities. Coinbase describes this license as the regulatory foundation for its international tokenization hub and the first of its two major non-U.S. institutional businesses established in the UAE, the other being its derivatives business in Dubai.According to the scope of the license, the FSP covers the arrangement and custody of tokenized stocks fully backed by underlying shares. Holders of digital securities can gain economic exposure such as dividends, while voting rights and redemption rights are subject to the conditions outlined in each prospectus. Coinbase states that investors only need a crypto wallet to trade, and secondary transfers do not require a brokerage account or banking relationship, but redeeming profits for fiat currency still requires a bank or brokerage account.Brett Tejpaul, Co-President of Coinbase Institutional: Currently, there is no major financial center that has established a framework that simultaneously regards tokenized stocks as securities, blockchain-native tokens, and composable DeFi assets. Arvind Ramamurthy, Chief Market Development Officer of ADGM, stated that the Coinbase hub reflects the center's progressive, robust, and internationally aligned regulatory framework. The FSRA issued its first virtual asset rules in 2018, which include protective measures such as sanctions screening and the ability to freeze or seize assets at the wallet level. ADGM applies English common law, and the FSRA's authority differs from that of the UAE Securities and Commodities Authority; registered entities do not automatically obtain a passport in other Gulf Cooperation Council jurisdictions.

Binance obtains full regulatory authorization from Abu Dhabi Global Market and will fully migrate to the ADGM regulatory framework

Binance has announced that it has obtained a full regulatory license from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), and its global platform will officially operate under the international regulatory framework of ADGM.In accordance with regulatory requirements, the platform's operations will migrate to a new three-entity structure to enhance transparency, oversight mechanisms, and risk management. Starting from January 6, 2026, Binance services will be provided by three ADGM-licensed entities: Nest Exchange Services Limited: responsible for platform operations such as spot and derivatives trading; Nest Clearing and Custody Limited: responsible for clearing and custody, acting as the central counterparty for derivatives trading; Nest Trading Limited: providing over-the-counter trading, instant exchange, and some wealth management services.This structure aligns with traditional financial regulatory models, reinforcing platform risk isolation and user asset protection through layered functions of matching, clearing, and custody. Along with the structural adjustment, Binance will update its user agreement. Starting from January 5, 2026, the rights and obligations of users under the original "Terms of Use" will automatically be assumed by the corresponding ADGM entities, and the relevant product terms will also be adjusted accordingly.The official statement indicates that the migration will not affect users' daily usage: UID, balances, order records, and available products will remain unchanged, and any open derivative positions will be transferred to Nest Clearing and Custody Limited for clearing and custody.
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