Abu Dhabi’s Push for Digital Asset Leadership

Summary

Coinbase has established an international “tokenization hub” in Abu Dhabi, granted a license by the Abu Dhabi Global Market (ADGM) to arrange investment deals and provide custody for tokenized securities. The move underscores Abu Dhabi’s growing role as a global center for digital assets. ADGM introduced one of the world’s first comprehensive virtual asset regulatory frameworks in 2018, attracting firms like Binance and SettleMint. Tokenization is gaining momentum in traditional finance, with major asset managers and banks increasingly using blockchain infrastructure. Adam Popat, CEO of SettleMint, said Coinbase’s presence signals the UAE’s regulatory depth and global ambitions in tokenization.

Our Reading

The numbers tell one story.

Coinbase opens a hub in Abu Dhabi, backed by a license to handle tokenized securities.

ADGM has attracted multiple crypto firms since 2018 with its regulatory framework.

SettleMint’s CEO says the UAE is a leading light in tokenization, not just regionally but globally.

Tokenization is moving from pilot to market, with big names betting on blockchain’s future.

Author: Evan Null

Abu Dhabi’s Push for Digital Asset Leadership

Abu Dhabi is making a strong push to become a global hub for digital assets. The emirate has attracted major players like Coinbase and Binance, both of which have received licenses to operate within its financial center, the Abu Dhabi Global Market (ADGM). This move is part of a broader strategy to position the UAE as a leader in tokenization, which involves converting traditional assets into digital form on blockchain platforms.

The ADGM introduced one of the world’s first comprehensive virtual asset regulatory frameworks in 2018, which has since drawn a steady stream of crypto and tokenization firms. This regulatory environment has made the UAE an attractive base for companies looking to operate in a well-structured and forward-thinking market.

Coinbase’s decision to set up an international tokenization hub in Abu Dhabi highlights the growing confidence in the region’s regulatory and technological infrastructure. The company has been granted a license to arrange investment deals and provide custody for tokenized securities, a move that is seen as a significant step toward mainstream adoption of digital assets.

Adam Popat, CEO of SettleMint, a company that helps institutions design and manage digital assets, emphasized that the UAE’s regulatory depth is now strong enough to host global issuance, not just regional experiments. This sentiment is echoed by other industry players who see the UAE as a key driver of tokenization adoption.

The UAE’s focus on digital transformation is not limited to just the financial sector. The government has launched ambitious national-scale programs to digitize all aspects of the economy, which, combined with deep capital pools and a growing talent base, is creating a favorable environment for the adoption of digital assets.

Coinbase and Binance: Pioneers in Abu Dhabi’s Digital Asset Ecosystem

Coinbase’s establishment of a tokenization hub in Abu Dhabi marks a significant milestone in the region’s digital asset journey. The company has been granted a license by ADGM to arrange investment deals and provide custody for tokenized securities, which is essential for gaining the trust of institutional investors. This move positions Abu Dhabi as a key player in the global digital asset market, attracting attention from other major players in the industry.

Binance, the world’s largest cryptocurrency exchange by trading volume, has also set up operations in Abu Dhabi. In December 2025, the exchange received a license from ADGM, allowing it to operate from the financial center. Binance’s trading volume in June 2026 was $4.74 trillion, which accounted for 39.5% of the total trading volume across the 11 exchanges it tracks. This underscores the growing influence of the UAE in the global crypto landscape.

The presence of these major exchanges in Abu Dhabi has not gone unnoticed. Adam Popat, CEO of SettleMint, noted that when a listed U.S. exchange chooses Abu Dhabi for its operations, it signals to issuers and allocators that the UAE has the regulatory depth to host global issuance. This is a strong endorsement of the UAE’s regulatory framework and its potential to become a global hub for digital assets.

With over 20 firms now holding active virtual asset licenses in ADGM, the region is rapidly building a robust ecosystem for digital assets. This includes not only exchanges but also companies that provide infrastructure and services for tokenization, such as SettleMint and ADI Foundation.

The UAE’s digital asset ecosystem is also being supported by its sovereign wealth funds, which are investing in tokenization initiatives. For example, Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth fund, has tokenized one of its private-market investment strategies through UAE-based infrastructure provider KAIO on blockchain, with Coinbase also taking an exposure to the fund.

The Role of ADGM in Shaping the Digital Asset Landscape

The Abu Dhabi Global Market (ADGM) has played a pivotal role in shaping the digital asset landscape in the UAE. Since introducing one of the world’s first comprehensive virtual asset regulatory frameworks in 2018, ADGM has attracted a steady wave of crypto and tokenization firms looking to establish a regulated base in the region. This regulatory environment has made ADGM a preferred destination for companies seeking to operate in a well-structured and forward-thinking market.

ADGM’s regulatory framework has been instrumental in attracting major players like Binance and Coinbase. Binance received a license to operate from the financial center in December 2025, while Coinbase established an international tokenization hub in the emirate. These moves have reinforced ADGM’s reputation as a leading hub for digital assets and have contributed to the region’s growing influence in the global crypto market.

The regulatory environment in ADGM has also been a key factor in attracting other firms. Over 20 firms now hold active virtual asset licenses in the ADGM, which includes not only exchanges but also companies that provide infrastructure and services for tokenization. This diverse ecosystem is helping to create a robust foundation for the growth of digital assets in the region.

ADGM’s regulatory framework is not just about compliance; it is also about fostering innovation. The center has been proactive in supporting the development of blockchain infrastructure and digital asset ecosystems. This has led to the creation of platforms like ADI Chain, which is being used to support the tokenization of securities under ADGM’s regulatory framework.

The success of ADGM in attracting digital asset firms is a testament to its forward-thinking approach and the strength of its regulatory environment. As more companies establish a presence in the region, ADGM is solidifying its position as a key player in the global digital asset market.

The Broader Implications of Tokenization in the GCC

The rise of tokenization in the Gulf Cooperation Council (GCC) is having broader implications for the region’s financial landscape. As major asset managers and banks increasingly bring funds, bonds, private credit, and equities onto blockchain infrastructure, the traditional financial system is undergoing a significant transformation. This shift is not just about technology; it is about redefining how capital is issued, traded, and allocated.

According to a report by global consulting firm Kearney, by 2030, close to $500 billion in assets across the GCC could be represented on blockchain. This includes private markets, funds, bank deposits, public equities, real estate, and commodities. The report highlights the significant headroom for growth in this market, which could hold a meaningful share of the region’s investable assets.

The report also notes that private markets represent the largest tokenization opportunity for the GCC, with an estimated market size of $154 billion by 2030. This suggests a fundamental shift in market dynamics, as tokenization has the potential to reshape how capital is issued, traded, and allocated. Governments, financial institutions, and asset managers are all recognizing the potential of this shift and are beefing up their digital asset strategies accordingly.

As the region continues to embrace tokenization, it is clear that the UAE is playing a leading role in shaping the future of digital assets. With major players like Coinbase and Binance establishing a presence in the region, and with strong regulatory support, the UAE is well-positioned to become a global hub for digital assets.

Future Prospects and Challenges in the Digital Asset Ecosystem

The future of the digital asset ecosystem in the UAE looks promising, but it is not without its challenges. As more companies and institutions enter the space, the need for coordinated, regulated infrastructure becomes increasingly important. This is where platforms like ADI Chain come into play, offering a solution that connects issuance, trading, settlement, and custody within a single recognized framework.

ADI Chain, developed by the ADI Foundation, is one of the fastest-growing institutional blockchain ecosystems in the region. The platform has secured a $50 million strategic investment, which is expected to support its international expansion across the Middle East, Africa, and Asia. This funding will help ADI Chain modernize payment systems, digitize public services, and support emerging digital economies in these regions.

The ADI Foundation is also working on the rollout of DDSC, a dirham-pegged stablecoin developed through a collaboration between First Abu Dhabi Bank, International Holding Company, and Sirius International Holding. This initiative highlights the growing interest in stablecoins and their potential to facilitate cross-border transactions and reduce volatility in the digital asset market.

While the UAE is making significant strides in the digital asset space, it is important to note that the region is not alone in its efforts. Saudi Arabia and Qatar are also exploring blockchain infrastructure to modernize their financial systems. For example, Saudi Arabia completed the world’s first sovereign-native tokenized title-deed transfer in early 2026, while the Qatar Financial Centre is taking steps to enable real estate tokenization.

Despite the progress being made, the digital asset ecosystem in the UAE and the broader GCC region still faces challenges. These include regulatory hurdles, technological limitations, and the need for widespread adoption. However, with the strong support from governments, financial institutions, and private sector players, the region is well-positioned to overcome these challenges and continue its rise as a global leader in digital assets.