BlackRock sets up in Abu Dhabi UAE as it plans regulatory approval from ADGM

BlackRock sets up in Abu Dhabi UAE as it plans regulatory approval from ADGM

The global fund manager BlackRock, which has a Bitcoin ETF, known as IBIT where in just 211 days since its launch has amassed $40 billion in assets, has received a commercial license in Abu Dhabi as it seeks regulatory approval to operate from the Abu Dhabi Global Market ( ADGM).

In a statement to Bloomberg, BlackRock stated, “Building on the long-standing relationships BlackRock has built with clients in Abu Dhabi and across the region over more than 20 years, the new office reflects BlackRock’s continued commitment to the UAE, and its dedication to fostering strong relationships with clients and partners in the country.”

The US headquartered company has assets under management of $11 trillion plus. Earlier in the year, BlackRock appointed Mohammad AlFahim as Head of the UAE. Ben Powell relocated to the region to serve clients as BlackRock Investment Institute’s first Chief Middle East & APAC Investment Strategist.

“Our presence in ADGM will enable us to better serve our clients around the world on whose behalf we engage with sovereigns, wealth managers and specialist investment vehicles based in Abu Dhabi, operating in sectors such as infrastructure, renewable energy, and technology,” said Charles Hatami, Head of Middle East and Global Head of the Financial & Strategic Investors Group, BlackRock. 

BlackRock’s growing focus on this region saw CEO Larry Fink as one of the headline speakers at Riyadh’s Future Investment Initiative (FII) forum last month, where he spoke about the largest macro trend in the world today is the amount of capital needed to digitize and decarbonise and rebuild infrastructure, amounting to trillions of dollars.

In May, BlackRock Inc. also revealed plans to set up a new investment platform in Saudi, backed by up to $5 billion from the country’s sovereign wealth fund the Public Investment Fund (PIF).

BlackRock’s strategic positioning and the increasing acceptance of Bitcoin as a viable investment option have contributed significantly to this success. The ETF’s performance highlights the potential for digital assets to become a mainstream component of investment portfolios.

ADGM regulatory authority releases consultation paper for security tokens, stablecoins and more

ADGM regulatory authority releases consultation paper for security tokens, stablecoins and more

UAE ADGM regulatory authority, the Financial Services Regulatory Authority (FSRA) has published a consultation paper No.10 to propose amendments on various regulations including those related to virtual assets. The amendments discuss, Digital security tokens, commodity tokens, stablecoins, and utility tokens.

As per the announcement, The proposed miscellaneous amendments result from the FSRA’s desire to simplify, clarify and correct certain requirements where appropriate and necessary, but are also in response to the FSRA’s experience of operating such legislation in practice.

The consultation period will close on 10 December 2024.

Digital Securities

In terms of virtual assets under the title “Regulation of Digital security offerings, virtual assets under the FSMR (ICO Guidance) and its Guidance on Regulation of Digital Securities activity in ADGM, it deals with the FSRA’s treatment of virtual assets and the financial activities that can be conducted in relation to them within ADGM.

The FSRA has defined Virtual Assets in the FSMR, as Digital Securities, which means digital or virtual tokens that have features and characteristics of a Security under the FSMR (such as Shares, Debentures and Units in a Collective Investment Fund).

As such all financial services activities in relation to Digital Securities, such as operating primary / secondary markets, dealing / trading / managing investments in or advising on Digital Securities, are subject to the relevant regulatory requirements under the FSMR.

Virtual assets as Commodities

In addition, market intermediaries and market operators dealing or managing investments in Digital Securities need to be licensed / approved by FSRA as FSP holders (including as Multilateral Trading Facilities), Recognised Investment Exchanges or Recognised Clearing Houses, as applicable “Virtual Assets” such as non-fiat virtual currencies, crypto ‘exchange tokens.

The Guidance also discusses virtual assets treated as commodities where only activities in Accepted Virtual Assets will be permitted.

In terms of capital formation activities, they are not within the virtual asset framework offered by FSRA in ADGM. While Derivatives and Collective Investment Funds of Virtual Assets, Digital Securities and Utility Tokens regulated as Specified Investments under the FSMR will need to be licensed by FSRA as FSP holders.

Utility Tokens

When it comes to Utility Tokens, which means tokens that can be redeemed for access to a specific product or service and are not for investment, they are also not regulated.

Stablecoins

Fiat tokens or stablecoins, which are fully backed by underlying fiat currencies which are used as a payments instrument for the purposes of money transmission will be licensed and regulated by the FSRA as providing money services.

UAE based ASSNTURE launches its Blockchain trade finance Tradedesk

UAE based ASSNTURE launches its Blockchain trade finance Tradedesk

ASSNTURE Limited, registered in Abu Dhabi ADGM ( Abu Dhabi Global Market) as a technology startup providing Asset Tokenization and Digital Assets Infrastructure Solutions, has launched “TradeDesk,” a blockchain-based platform designed to revolutionize the management and settlement of trade finance transactions for finished goods, raw materials, and commodities.

TradeDesk leverages blockchain technology to enable frictionless finance, tracking, verification, and settlement of trade transactions. This platform enables businesses to invite and transact on international trades ensuring governance and transparency throughout,
whilst providing a secure and efficient digital network for seamless, transactions

This innovation offers its users unmatched efficiency and security by ensuring security and trust between all parties involved, whilst also providing users the ability to leverage liquidity on trades through the tokenization of the goods themselves. This allows sellers to obtain upfront liquidity for the goods in trade, providing immediate cashflow.

“With TradeDesk, we are transforming the trade finance landscape by providing businesses with a secure, peer-to-peer digital solution that streamlines the entire trade process,” said Ihsan Khelef, Co-Founder & MD at ASSNTURE Limited. “Our platform not only enhances the speed and transparency of transactions through blockchain, but also fosters trust between buyers and sellers, making trade finance more accessible and efficient.”

Designed for businesses of all sizes, TradeDesk simplifies the complexity of international trade, allowing users to manage and settle transactions in real-time. By removing the reliance on banks and other financial intermediaries, TradeDesk empowers businesses to focus on growth and innovation, without the challenges and costs of traditional trade finance models.

UAE a source of significant amount of crypto trading for Brevan Howard

UAE a source of significant amount of crypto trading for Brevan Howard

 During the AIM Conference in Dubai, Brevan Howard a global hedge fund management fund which recently opened its offices in Abu Dhabi UAE noted that it does a significant amount of its crypto trading from the United Arab Emirates. Ryan Taylor, Group head of compliance at Brevan Howard stated that this was because of the country’s sensible regulations.

Taylor stated, “The regulators in the UAE are hard, but they want the industry to fly and so they write sensible regulations and they are prepared to talk to the industry in order to evolve those regulations.”

Taylor said that Brevan Howard’s crypto trading operations represented about $2 billion of the firm’s total strategies which he said were over $30 billion. Brevan Howard has become the first global hedge fund to have 100 employees in the United Arab Emirates.

The statements come soon after Brevan Howard became the first client for Standard Chartered regulated crypto custody service out of DIFC.

In May 2024, Standard Chartered announced that it had signed a memorandum of understanding (MoU) with Dubai International Financial Centre (DIFC) to collaborate on digital assets, including digital asset custody through its Zodia Custody entity. The now licensed service will allow clients to safekeep their Ethereum and Bitcoin cryptocurrencies as a start.

Brevan Howard Digital, the dedicated crypto and digital asset division of Brevan Howard, is confirmed as the inaugural client for the product.

During the announcement, Gautam Sharma, Chief Executive Officer of Brevan Howard Digital commented, “This is a significant win for the UAE and the wider digital asset industry. Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption. The development of the institutional infrastructure within the asset class and region supports our established business within the ADGM in its continued expansion and our ongoing efforts toward improving and reinforcing standards in the digital asset ecosystem.” 

Brevan Howard, which manages $35bn in assets, opened its Abu Dhabi office in February 2023.

CyBirb Blockchain Security company launches in Abu Dhabi’s ADGM

CyBirb Blockchain Security company launches in Abu Dhabi’s ADGM

CyBirb, aWeb3 security company, has launched its operations in Abu Dhabi Global Market (ADGM), the international financial center of the UAE’s capital after receiving its license.

As per the press release, the move aims to strengthen capabilities in blockchain cybersecurity and compliance across the region. CyBirb’s expansion marks a significant milestone in enhancing blockchain security and fostering innovation in the UAE and beyond. The decision to launch operations within ADGM was driven by the financial centre’s reputation for innovation and robust regulatory standards. CyBirb is set to offer a suite of advanced security solutions, including Smart contract audits, Decentralized application (DApp) security, Wallet screening and transaction monitoring and AI-powered real-time threat detection.

Manan Shah, Founder and Chief Executive Officer of CyBirb, stated: “Our establishment in ADGM is a game-changer for blockchain security in the region. We’re bringing world-class cybersecurity solutions to a hub of innovation and regulatory excellence. We are confident that our presence in ADGM’s ecosystem will enable us to set new global benchmarks in Web3 security and compliance.”

The company plans to collaborate with key stakeholders in ADGM, including financial institutions, technology firms, and academic institutions, to continuously enhance its services and contribute to strengthening the overall blockchain ecosystem. Commenting on these collaborations Manan Shah added, “These partnerships are integral to our mission of creating a secure and thriving blockchain ecosystem. By collaborating with leaders across various sectors, we’re not just offering security solutions – we’re building a foundation for the future of Web3 in the MENA region.”

UAE ADGM and Fintech Tuesdays to enhance Fintech with research on Blockchain, AI, and Regtech

UAE ADGM and Fintech Tuesdays to enhance Fintech with research on Blockchain, AI, and Regtech

The ADGM Academy’s Research Centre and Fintech Tuesdays have signed a Memorandum of Understanding (MOU), to enhance collaboration on knowledge sharing, research, training and events for Fintech including emerging trends such as AI ( Artificial Intelligence), blockchain, and Regtech ( Regulatory Technology).

In line with the MOU, ADGM Academy and Fintech Tuesdays will collaborate on a series of initiatives such as joint research projects, fintech-focused workshops, and thought leadership events. These will provide a platform for industry experts to share insights on emerging trends such as artificial intelligence, blockchain, and regulatory technology (RegTech). Training programs will result in curated content to support the fintech and digital community in driving upskilling and re-skilling to ensure the development of the local talent base.

“This partnership is a testament to our commitment to building a strong, innovation-driven fintech ecosystem in the UAE,” said Jassim Al Marzooqi, Senior Director, ADGM Academy. “Through this collaboration with Fintech Tuesdays, we aim to provide unparalleled opportunities for knowledge sharing, training, research and development, which will pave the way for the next generation of fintech solutions.”

Arjun Vir Singh, Advisory Council Member at Fintech Tuesdays, said, “We are excited to be part of this strategic alliance with ADGM Academy. Together, we will drive forward fintech innovation in the region by creating meaningful opportunities for startups, investors, and policymakers to collaborate and thrive.”


ADGM Academy and Fintech Tuesdays will collaborate on future annual editions of the UAE Fintech Jobs Report, which will bring together the expertise of an academic research team and the fintech community.

This partnership aims to provide in-depth insights into the evolving fintech job market, exploring trends in talent acquisition, skill demands, and employment growth across the sector. By combining rigorous academic research with real-world industry perspectives, the report will serve as a vital resource for businesses, policymakers, and professionals, helping to shape the future of fintech employment in the UAE and ensuring that the sector continues to thrive as a driver for global innovation.

Soter a digital asset insurer, a portfolio company of UAE Further Ventures receives initial regulatory approval from BMA

Soter a digital asset insurer, a portfolio company of UAE Further Ventures receives initial regulatory approval from BMA

A portfolio company of Abu Dhabi based Further Ventures, Soter Insure, a provider of insurance products tailored to the digital asset economy, whose CEO was the former CEO of VARA Dubai ( Virtual Asset Regulatory Authority), has received initial approval from the Bermuda Monetary Authority (BMA), to offer a range of insurance solutions designed specifically for institutions operating in the blockchain and cryptocurrency space.

As per the press release, the approval marks a significant milestone for Soter, enabling the company to address the evolving risk management needs of the digital asset sector.‍

“This regulatory approval is a testament to the vision we share with our partners and the growing need for tailored risk management solutions in the digital asset space,” said Henson Orser, CEO of Soter Insure. “With the rise of institutional adoption of blockchain technology, our products provide a critical layer of security for asset managers, funds, and validators. We are proud to offer coverage that aligns with the assets themselves—whether it’s Bitcoin, Ethereum, or other native currencies—allowing policyholders to be indemnified in the very currency they are seeking to protect.”

Further Ventures noted on LinkedIN, “Our portfolio company Soter Insure has just announced receiving the initial approval from the Bermuda Monetary Authority. Great start for the project as we plan to share more updates and valuable content soon!”

Further Ventures is a venture builder and investment firm based in Abu Dhabi. It supports innovative startups such as fintech, VASPs which include virtual asset payments products, blockchain based asset custody and security solutions, and others. ‍

Soter has offices in Abu Dhabi Global Market Square, Abu Dhabi, United Arab Emirates

Previously UAE headquartered Fuze, a digital assets infrastructure provider, raised a seed round of $14mn, the largest Seed investment in a digital assets startup in the history of the Middle East and North Africa region (MENA) led by Abu Dhabi-based Further Ventures, along with participation by US-based Liberty City Ventures.

Soter’s product suite includes Directors & Officers (D&O) coverage, Asset Loss policies, and a unique Slashing insurance product that protects validators in Proof of Stake networks. Notably, all policies are denominated in the native digital currency being insured. For instance, Ethereum Validator Slashing losses are paid out in Ether, while Bitcoin asset loss policies are settled in Bitcoin—a groundbreaking approach that ensures alignment between the asset at risk and the insurance coverage.

‍

Finstreet launches Blockchain enabled digital venue for trading financial assets in ADGM

Finstreet launches Blockchain enabled digital venue for trading financial assets in ADGM

Finstreet, a subsidiary of Rorix Holding, announced on LinkedIn, that it would be the first to launch a Blockchain enabled regulated digital venue for trading financial assets both global private and public securities from Abu Dhabi ADGM ( Abu Dhabi Global Market).

As per the post, “ Finstreet will be using a blend of traditional and blockchain technology, Finstreet enables investors and issuers worldwide to access greater liquidity, global connectivity, and comprehensive 360-degree trading — all from one centralized global infrastructure.”

They add, “This is just the beginning of what we believe will reshape the future of securities and commodities markets.”

This category defining financial market infrastructure and its combination of activities makes it the first of its kind to operate across the global markets from Abu Dhabi’s ADGM. Following direct application of English common law under the regulation and supervision of the FSRA, Finstreet provides a platform for transitioning towards the future of capital markets as they respond to the opportunities presented by new technologies.

Finstreet’s three subsidiaries will be the first regulated, global market infrastructure to offer an end-to-end hybrid traditional and blockchain-powered ecosystem to investors and issuers, covering the full lifecycle of financial assets, including origination, issuance, trading, settlement and custody.

Dr. Thani bin Ahmed Al Zeyoudi, the Executive Chairman of Rorix Holdings, stated, “Today’s launch of Finstreet and the granting of its FSP licence by ADGM’s Financial Services Regulatory Authority is a testament to the UAE’s commitment to embracing technological advancement and enabling inclusive global trade. I am certain that Finstreet’s digitised trade exchange platform will provide markets with a holistic approach towards international trade and bring a new standard to capital markets on a global scale.”

Ahmed Jasim Al Zaabi, the Chairman of Abu Dhabi Global Market (ADGM), said, “Finstreet’s pioneering initiative embodies ADGM’s unwavering commitment to driving innovation and redefining the future of global finance. By establishing the first regulated digital market for the trading of both public and private securities within our jurisdiction, we are further solidifying Abu Dhabi’s status as a premier global financial hub. This launch not only reinforces our strategic vision of positioning Abu Dhabi at the heart of global finance but also propels economic growth and enhances connectivity across the global marketplace.”

Ajay Hans Raj Bhatia, the Chief Executive Officer of Sirius International Holding and Managing Director of Finstreet, commented, “With this initiative, we further our mission to diversify UAE’s economic growth agenda. Finstreet provides a foundation for a new, innovative infrastructure to allow global financial market participants to both realise their own capital raising ambitions and participate in the substantial growth story of UAE-based firms.”

Sunidhi Pasan, the Chief Executive Officer of Finstreet Limited, added, “By harnessing Finstreet’s innovative infrastructure and deep market knowledge, we are opening up new avenues for investment and trading for issuers and investors both in the region and abroad.”

UAE M2 now offers seamless AED to BTC and ETH conversions

UAE M2 now offers seamless AED to BTC and ETH conversions

M2 registered in ADGM, a virtual asset custodian and a Multilateral Trading Facility regulated by the Financial Services Regulatory Authority (FSRA) ADGM, has launched what it calls a simplified pathway for UAE residents to buy and sell Bitcoin (BTC) and Ethereum (ETH) through a direct integration with their bank account.

As per the press release, the integration serves as a significant milestone both for the wider accessibility of virtual assets in the region, as well as M2 working to offer a best-in-class product offering within a rapidly evolving landscape.

The new solution will allow UAE residents with banking services to seamlessly convert United Arab Emirates’ Dirhams (AED) into BTC and ETH – and vice versa – via trading pairs listed on M2’s spot market.

The press release adds, that this new pathway, which leverages the strength and security of robust banking infrastructure, is the most recent milestone in M2’s continued work to build trust and industry leading compliance in providing both the safe custody of virtual assets, and the ability to trade Bitcoin (BTC) and Ethereum (ETH) with UAE Dirham (AED).


CEO of M2 Stefan Kimmel said, “Through this compliant integration, UAE residents can enjoy the familiarity of their existing and trusted banking services, coupled with the cutting-edge security and functionality of our platform. This is all executed within one of the world’s strictest regulatory frameworks where consumer protection, technology, governance and custody are paramount. It is a significant step for M2 in ADGM as we work to expand our offering for the MENA region and reduce the friction in how clients can navigate between traditional finance and virtual assets.”

Sources close to the matter explained to Lara on the Block, that currently M2 is working with one major bank ( which prefers not to be named) and will expand this to other banks in the UAE in the future.

M2 registered in ADGM, which launched back in November 2023, announced that it was able to onboard retail and institutional clients and would be offering AED Fiat on and off ramp through its participation with a local bank. Eight months later, M2 is finally able to do this.

In a previous interview with Stefan Kimmel with Lara on the Block, Kimmel noted, that launching a fully regulated, transparent clean startup from Abu Dhabi ADGM ( Abu Dhabi Global Market) was because the FSRA ( Financial Services and Regulatory Authority) in ADGM is one of the oldest most respected and esteemed regulatory authorities when it comes to virtual assets and crypto. FSRA as Kimmel explained has been around for five years and has a comprehensive solid framework. He stated, “ After all that has happened in crypto over the past few years, everyone is looking for a safe protected transparent exchange, and this is what we are offering from ADGM.”

He also noted, M2 has is its strong liquidity which is essential for the success of any crypto exchange. M2 has an equity investment of $300 million with strategic partners being UAE based Phoenix Group and several Abu Dhabi family offices.

UAE crypto custodian Changer AE receives additional crypto broker license from FSRA

UAE crypto custodian Changer AE receives additional crypto broker license from FSRA

UAE based Changer.ae an independent crypto custodian service, has obtained the regulatory approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to conduct the Regulated Activity of Dealing in Investment as Agent. In addition to conducting the Regulated Activity of Providing Custody and offer investors a reliable, convenient, and accessible wallet to safeguard and manage their Virtual Assets, Changer will now be able to securely and seamlessly deal in investments as an agent.

The platform is dedicated to securing users’ Virtual Assets and provides an elevated digital experience and is complemented by a transparent subscription-based monthly service according to the assets held under custody. In addition to Providing Custody, Changer is will launch a new exchange service that provides banking-grade escrow services for secure transactions. This initiative underscores Changer’s commitment to delivering a secure, simple, and seamless digital experience.

As per the announcement, cryptocurrency investors worldwide can easily access Changer’s services via the user-friendly Changer mobile application, available on the App Store, Google Play Store, or Huawei App Gallery.

Wang Hao, CFA, CFtP, Senior Executive Officer of Changer, commented, “We are proud to obtain the FSP license, targeting individuals globally and providing them with a reliable, convenient, and accessible wallet to safeguard and manage their virtual assets. This license marks a significant milestone, highlighting our dedication to delivering a secure, simple, and seamless digital custody service that is independent and regulated”.

changer.ae received  the Financial Services Permission (FSP) license by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) for crypto custodial services in September 2023.