Coinbase’s Abu Dhabi Tokenisation Hub and the ADGM Route: Options for Indian Real-World Asset Founders

In August 2026, Coinbase announced that it had received a Financial Services Permission from Abu Dhabi’s Financial Services Regulatory Authority to set up an international tokenisation hub in the Abu Dhabi Global Market. For Indian real-world asset founders, the news is a reminder that the UAE has more than one route for tokenisation. The ADGM tokenization Indian founders question is where to set up, which regulator to deal with and what Indian law still requires.

This guide explains what was reported about the Coinbase hub, how the ADGM route works, how it compares with VARA in Dubai, the DIFC and India’s GIFT City, the Indian-law constraints on tokenising Indian assets and a practical decision framework. We worked from press and trade reports, not the FSRA’s permission text. UAE-law points should be confirmed with UAE-licensed counsel.

What Coinbase announced in Abu Dhabi

According to reports around 13 August 2026, Coinbase received a Financial Services Permission from the FSRA to establish its international tokenisation hub in the ADGM. The permission is reported to allow it to arrange investment deals and provide custody for tokenised securities. Coinbase says the tokenised securities are backed by underlying shares, that holders have shareholder rights, that transfers are subject to sanctions screening and that assets can be frozen or seized at wallet level where required.

We could not confirm further details of the permission or any conditions from primary sources. Reports also link the hub to wider plans in the UAE, but we have not verified them, so we do not repeat them. Anyone relying on the Coinbase announcement for a business decision should read the FSRA’s public register and the company’s own statements.

The significance for Indian founders is regulatory rather than commercial. A major global platform chose ADGM for tokenised securities, which signals that the FSRA’s framework treats tokenised securities as securities and can accommodate a regulated hub. It does not mean that any other project can copy the model without its own permissions.

How the ADGM route works

ADGM is a financial free zone in Abu Dhabi with its own regulator, the FSRA, and its own laws based on English common law, applied by the ADGM Courts. A business that carries out regulated activities in or from ADGM needs a Financial Services Permission from the FSRA for those activities. The FSRA has a framework for virtual assets and for tokenised securities, which it treats as regulated investments with the corresponding rules on custody, intermediation and disclosure.

For a tokenisation project, the key questions are what the token represents, who issues it, who holds the underlying asset and which activities are carried out: issuing, arranging, dealing, custody, operating a trading venue. Each activity can require a permission. A project can use a licensed partner to carry out the regulated activities instead of applying for its own permission, which may be faster for a startup, but the contracts must allocate responsibility clearly.

A permission is a serious undertaking. Expect questions on governance, capital, compliance, technology and the fitness of senior people, and timelines that run to months. The ADGM tokenization Indian founders route is attractive where an English-law forum and a securities-style regime suit the product, but it is not a shortcut.

Banking and custody are practical gates. Tokenised securities need custody of the underlying asset or share, bank accounts for fiat flows and a way to handle corporate actions such as dividends. Each partner has its own onboarding, and Indian-founded projects should expect detailed questions about beneficial ownership, source of funds and the legal status of the underlying asset. Starting these conversations early often decides the timeline more than the regulatory application does.

ADGM, VARA, DIFC and GIFT City compared

Dubai’s VARA regulates virtual asset activity in and from Dubai, including free zones but excluding the DIFC, and published detailed issuance guidance in April 2026. The DIFC, also in Dubai, has its own regulator, the DFSA, and its own token regime. ADGM, in Abu Dhabi, has the FSRA. The UAE Securities and Commodities Authority also has a role for activities outside the financial free zones, and overlap is possible. Founders must therefore choose a regulator along with a location.

GIFT City in India is an International Financial Services Centre regulated by the IFSCA. It offers a regime for capital market and fund activities and is closer to Indian investors and assets, but its approach to tokenised or crypto assets is more cautious and still developing. Our guides on Dubai versus GIFT City and on tokenised real estate in Dubai cover points specific to those routes.

In broad terms, VARA suits virtual asset businesses and tokens issued from Dubai, ADGM suits tokenised securities and funds within an English-law securities framework, the DIFC suits businesses that want a financial-centre regime with Dubai courts, and GIFT City suits businesses that want an Indian-regulated entity. Which is best depends on the asset, investors, banking and cost. The ADGM tokenization Indian founders choice should be made on the product, not on headlines.

Indian-law limits on tokenising real-world assets

India has no dedicated framework for tokenised real-world assets, so existing law applies. Indian real estate is governed by property and registration law and by foreign exchange rules on who can acquire it. Indian shares and securities are regulated by SEBI, and offering fractional interests to many investors can raise collective investment scheme questions. A token that gives rights over Indian assets does not change the underlying law.

FEMA governs how non-residents may invest in Indian assets and how Indian residents may invest abroad. Moving Indian assets into an overseas structure, or issuing tokens abroad that give non-residents rights over Indian assets, can need RBI or government compliance. Indian-resident investors buying tokens overseas use the Liberalised Remittance Scheme or other routes with limits, and must disclose foreign assets.

Tax adds layers. Gains on virtual digital assets are taxed at a flat 30% for Indian residents, and the tax treatment of tokenised securities may differ depending on the nature of the token. Where founders are Indian residents, a UAE company managed from India can face Indian tax residence questions. Take Indian advice before starting, because UAE approval does not solve Indian legal problems.

Investor eligibility is another decision. Tokenised securities in ADGM are generally offered under securities-style rules that distinguish between retail and professional investors, with different disclosure and suitability requirements. A founder who wants to reach Indian investors must also consider Indian rules on overseas investment and on offering financial products to residents. Define the target investor group first and design the structure around it, which is a core step in any ADGM tokenization Indian founders plan.

Choosing a route, remedies and quick answers

Work backwards from the asset and the investors. If the asset is Indian real estate or Indian securities, begin with Indian law, because that is where the main legal risk sits. If the token is a security or fund interest and investors are institutions, consider ADGM or the DIFC. If the token is a virtual asset sold in Dubai, consider VARA. If Indian regulatory comfort matters, consider GIFT City. For each, ask about licensing partners, banking, custody, audit and the time to market. The ADGM tokenization Indian founders question usually ends with a hybrid: an Indian-law analysis of the asset, a UAE regulated structure for the token and Indian tax and FEMA planning for the founders and investors. Do not market tokens to Indian retail investors without advice, and do not promise returns. If you have launched without the right permissions, stop and take advice. If a regulator contacts you, respond accurately and promptly. Keep the structure under review as regulators publish new guidance, and keep records of the legal analysis that supported each decision.

Related reading: VARA token issuance guidance 2026 for Indian founders, the VARA and Securitize tokenisation MoU, tokenized real estate in Dubai for Indian investors, DMCC and VARA licences compared, Dubai vs GIFT City for crypto and Web3, launching a token from Dubai with Indian investors and a Dubai holding company for Indian founders and FEMA; also DIFC versus ADGM for crypto tokens in 2026; also the GENIUS Act and stablecoins from 18 January 2027.

Quick answers

What did Coinbase announce in Abu Dhabi?

Reports say Coinbase received a Financial Services Permission from the FSRA in about August 2026 to set up an international tokenisation hub in ADGM, allowing it to arrange investments and provide custody for tokenised securities. We did not review the permission itself.

Is ADGM better than VARA for Indian tokenisation founders?

Not generally. ADGM suits tokenised securities within an English-law securities regime, while VARA covers virtual asset activity in Dubai. The better route depends on the asset, investors and activities, and Indian law applies in either case.

Can I tokenise Indian real estate through an ADGM structure?

Not safely without Indian advice. India has no dedicated framework for tokenised real-world assets, and property, securities, FEMA and tax law still apply. A UAE permission does not remove those requirements.

Did the permission cover other Coinbase activities?

We reviewed press and trade reports, not the permission text, and we could not confirm further details or conditions. Check the FSRA public register.

Is ADGM a shortcut to approval?

No. A permission involves governance, capital, compliance and technology review, and timelines run to months. A licensed partner can carry out regulated activities in some cases, with clear contracts.

Final word

Halverton & Co. is an Indian law firm advising NRIs, founders, investors and businesses in Dubai and across the UAE on Indian law, including real-world asset tokenisation structuring, FEMA, SEBI and Indian tax advice for Indian founders using UAE regulatory routes. We practise in Jharkhand, Maharashtra and before the Supreme Court of India, and work alongside UAE-licensed counsel, who advise on UAE law. Halverton & Co.: Where tech needs law! If you have a question about Indian law, write to us at office@halvertonandco.com, or get in touch.

This article reflects developments reported up to late October 2026. It is for general information only, is not legal advice, and does not create an advocate-client relationship. Halverton & Co. is an Indian law firm and does not advise on UAE law; UAE-law points should be confirmed with UAE-licensed counsel.