It is one of the several variants in the group of "Universal Time" standards (irony of all ironies).
It's probably that the other members of the group do not talk to each other, so a new standard that does was needed -- a "co-ordinated" standard.
Now we can see that "Coordinated" is essentially a second thought, a qualifier that is more in the nature of a subscript than a full-fledged adjunct.
Just read it with an implied comma:
Universal Time, Coordinated.
meta: The above is from the ELU point of view; restricted to the ELU purview.
Natl. Hurricane Ctr; NOAA "What is UTC or GMT Time?"
Prior to 1972, this time was called Greenwich Mean Time (GMT) but is now referred to as Coordinated Universal Time or Universal Time Coordinated (UTC). It is a coordinated time scale, maintained by the Bureau International des Poids et Mesures (BIPM). It is also known as "Z time" or "Zulu Time". (emphasis mine)