UAE regulated digital asset service provider and custodian, Komainu, licensed by VARA Dubai, and backed by Laser Digital, a Nomura company, has raised $75 million in strategic investment from Blockstream Capital Partners (“Blockstream”) in Bitcoin. The raise is subject to relevant regulatory approvals.

As per the press release, the funding enables the company to accelerate its international strategic growth plans whilst adopting and integrating class-leading technologies developed by Blockstream Corporation Inc (“Blockstream Corp”), to maximize efficiencies and enhance client services in collateral management and tokenization.

The funding transaction itself is funded in Bitcoin with appropriate hedging and risk management and Komainu establishing its own Bitcoin Treasury to manage the Bitcoin provided by Blockstream.

Blockstream Corp’s Liquid Network will enable Komainu to dramatically cut the time for its off-exchange margining & settlement solution, Komainu Connect, from hours to minutes, becoming class-leading in the process. Blockstream Corp’s AMP technology will enable Komainu to automate its regulated asset support for tokenization and develop trustless trading solutions. The company will also integrate other technologies and services developed by Blockstream Corp, including its enterprise HSM wallet, in order to provide institutional clients with a broader range of bank-grade digital asset services.

To solidify the strategic partnership between the two entities, Adam Back, PeterPaul Pardi and Nicolas Brand will join Komainu’s board of directors.

Adam Back, CEO Blockstream Corp, commented “We are delighted that Komainu is adopting Blockstream’s various technology streams to enhance its institutional service offering. This is testament to the fundamental veracity of Bitcoin-related technologies and applications and marks the first time that these have entered the institutional arena. I am confident this will be the first of many such use cases as the institutional community wakes up to the power of the Lightning and Liquid Networks.”

Paul Frost-Smith, Co-CEO at Komainu, and who also joins Komainu’s board of directors, said, “At Komainu, our mission is to empower the digital asset ecosystem by offering secure, compliant, and innovative digital asset services. This partnership with Blockstream will transform the services we are able to offer and enhance our customer experience on many levels. Having a closely-aligned technology partner like Blockstream, one of the original visionaries in the digital assets ecosystem, is testament to our determination to become the go-to provider of digital asset services for Bitcoin and the institutional market, as well as increasing institutional adoption.”

PeterPaul Pardi, Director, Blockstream Corp, commented “This partnership with Komainu, backed by Nomura’s Laser Digital, is a landmark moment for the adoption of Bitcoin-related technology by a bank-built, regulated financial services business. It showcases the institutional use-cases for Bitcoin as demand reaches new highs. We are delighted that Komainu has chosen to implement Blockstream’s technology and we anticipate even wider uses for it in the institutional investor community over coming months”

Robert Johnson, Co-CEO & CTO at Komainu, said, “Integrating Blockstream’s technologies will significantly enhance and diversify our underlying core technology stacks. At Komainu we believe in offering our clients a wide choice of technology options and this partnership with Blockstream will maximize efficiencies and lower latencies across the various services that we offer. “

Further Ventures, a private equity fund in Abu Dhabi UAE, has led a $16 million investment Series A round in French digital asset wallet and custodian developer, DFNS, DFNS, which was launched in 2020, and has operations both in Paris and New York aims to compete against FireBlocks and Ledger.

Using the funds raised both in 2022, $12 million and that raises now $16 million, the startup plans to accelerate its development to meet requirements of financial institutions.

This deal was led by Further Ventures, which is a private equity fund based in Abu Dhabi. Other historical investors, such as White Star Capital, Hashed, Semantic, Techstars and Bpifrance also participated in the round.

“This deal validates both our product and our focus on fintechs and financial players,” explains Clarisse Hagège, co-founder and CEO of DFNS, which claims more than 130 customers including Fidelity, Zodia Custody (Standard Chartered’s crypto subsidiary) and Stripe, which has just acquired Bridge.

DFNS developed a wallet creation solution based on MPC (Multi-Party Computation) technology. This MPC technology breaks down the access keys to the digital wallet into fragments; these are then distributed across different secure universes. Using an API system, the startup allows developers to take bricks and create their own wallet system.

“We allow our customers to deploy their own instances on public clouds like AWS, private clouds, and connect their Thales or IBM HSMs to our blockchain transaction management system,” explains Clarisse Hagège

Als in terms of pricing , while not all offers are the same, the startup offers a billing system based on usage and not on volumes under management.

UAE Future Ventures has already invested in several digital asset service providers including Soter Insure, a provider of insurance products tailored to the digital asset economy licensed by VARA in the UAE, as well as QCP, a global digital asset trading firm, Fuze, a digital assets infrastructure provider, TwinStake, Tungsten, Kemet trading, and others.

Hex Trust, a regulated provider of virtual assets custody, staking and market services has officially opened HT Markets MENA offering fiat on/off-ramp services in Dubai UAE through its secure, institutional-grade platform.

These services are immediately available for institutional clients and accredited investors with a minimum on-ramp threshold of AED 368,000 (equivalent to USD $100K).


Hex Trust established a Dubai office in June 2022. It currently holds three Virtual Asset Service Provider (VASP) licenses in Dubai, issued by the Virtual Asset Regulatory Authority (VARA). This includes a license to provide Virtual Asset Custodial Services, a second license for its VA Broker-Dealer and and a third for VA Management and Investment arm, HT Markets MENA FZE.

As per the announcement, these licenses allow Hex Trust to offer comprehensive Virtual Asset services covering Broker-Dealer and Management and Investment Services, which include regulated Staking Services.


“We are one of the first VA broker-dealers in the MENA region to offer an efficient and secure bridge between fiat and virtual assets. This unique offering caters to the huge appetite for on/off-ramp services in Dubai and is a significant achievement for HT Markets MENA.
We see enormous potential for virtual asset growth in Dubai given the progressive regulations, welcoming governments, and thriving crypto ecosystem. ” Filippo Buzzi, Hex Trust’s Regional Director MENA.


Hex Trust Markets offers safe access to the DeFi ecosystem, where clients can generate yield with native on-chain staking solutions and execute trades with the support of Hex Trust’s dedicated Markets team. It also brings secure access to crypto-fiat conversions through Hex Trust’s fully-licensed, institutional-grade custody platform. This enables investors in Dubai to seamlessly move their cryptocurrencies into fiat currencies, fostering a secure and compliant trading environment.

Aspen Digital, a full-service private wealth management platform built for family offices and ultra-high net worth clients allocating into digital assets, co-incubated by Everest Ventures Group and TTB Partners and backed by RIT Capital Partners, Liberty City Ventures and Token Bay Capital today has received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority of ADGM.

The license grants the company permission to provide broker-dealer, asset management, advisory, and custody services under its fully regulated and best-in-class tech platform. The wealth management platform received preliminary approval back in June 2024.

Elliot Andrews, CEO of Aspen Digital, said, “ADGM has established itself as a global center for digital assets, and we look forward to contributing to the continued development of the ecosystem. With digital assets increasingly becoming an important part of the private wealth portfolio, Aspen Digital is uniquely positioned to service this segment of clients in the region by providing a holistic solution across the asset class.”

Arvind Ramamurthy, Chief Market Development, ADGM, added, “We are delighted to welcome Aspen Digital to ADGM, further cementing its reputation as a global financial hub and its growing prominence as a leading wealth management hub. Aspen Digital’s decision to establish its presence in ADGM is a testament to the strength of our regulatory framework and our ability to enable private wealth platforms to serve the growing demand for digital assets across the region. We look forward to supporting Aspen Digital in its journey to advance the private wealth management landscape in Abu Dhabi and beyond.”

UAE based Zand Bank, an AI powered digital bank, has received a full VASP license from Dubai’s virtual assets regulatory authority (VARA) allowing it to offer crypto custodial services. The license allows Zand to offer crypto and digital asset custodial services to institutional investors and qualified investors.

Zand, the AI-powered bank for the digital economy and first fully licensed all-digital bank in the United Arab Emirates was founded to support the digital economy and bridge the gap between Traditional Finance (TradFi) and Decentralized Finance (DeFi).

Mohamed Alabbar, Chairman of Zand, commented: “This approval from VARA is a milestone for Zand and the UAE’s digital economy. It reflects our commitment to bold innovation and sustainable growth. Our mission is to establish Zand as a cornerstone of the UAE’s evolving financial landscape, contributing to the nation’s ambition to be a global financial powerhouse.”

Michael Chan, CEO of Zand, added: “We would like to extend a heartfelt token of appreciation to VARA for their continued support of Zand. Our Digital Asset Custody service is a significant step in UAE banking. By providing institutional-grade security for digital assets, we are equipping our clients with the tools they need to thrive in the digital economy. The upcoming launch of Zand’s AED-backed stablecoin will further enhance our ability to integrate TradFi and DeFi, reinforcing our leadership in this space.”

Zand Bank has been chosen by several crypto exchanges and brokers who are working in the UAE as their digital banking partner. With Zand’s new crypto custodial license, VARA would have licensed three crypto custodians, Zand, Hex Trust, and Komainu.

Zand Bank has been growing its presence and offering within the UAE and GCC region. It has signed several partnerships over the past year, the last being with Paymentology.

Paymentology and Zand will enable fintech entities to thrive by offering a range of specialized services, including BIN-sponsorship, virtual IBANs, and Client Money Accounts. These services are designed to help fintech entities launch and scale faster, providing them with the infrastructure to bring their solutions to market efficiently.

The timing aligns with the UAE government’s push to establish a strong digital economy through the UAE Digital Economy Strategy, which aims to double the sector’s contribution to the nation’s GDP from 9.7% (April 2022) to 19.4% over the next decade.

Additionally, IDA, a Hong Kong-based stablecoin issuer, also partnered with UAE Zand Bank, to offer cost-effective and efficient cross-border transactions across the Belt and Road regions and BRICS Plus. As per the press release both entities aim to provide businesses with streamlined 24/7 digital payments.

Updated Dec 14th with quotes

Operating under full regulatory approval from the Central Bank of Bahrain, Singapore Gulf Bank (SGB) has launched in Bahrain to offer comprehensive digital banking services to corporate customers in the digital economy to manage their traditional financial and digital assets on a single platform.

Global clients can onboard through Singapore Gulf Bank’s remote digital on-boarding solutions. SGB will extend its digital banking services to individual clients by the end of the year.

In addition to regular corporate banking services, SGB will provide a real-time settlement network, digital assets custody and intuitive trading solutions, all underpinned by robust AML/KYC measures. As per the announcement this enables businesses to manage their finances flexibly, whether they are traditional or digital assets – facilitating their participation in the digital economy.

Edmund Lee, Founding Chairman of the Board of SGB, stated, “We’re building the foundation for a new era of global finance where traditional and digital worlds converge to enable businesses to operate anytime and anywhere.”

H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development, Chief Executive of Bahrain Economic Development Board, said, “The launch of SGB marks a pivotal moment in deepening financial connectivity between MENA and Asian markets through Bahrain. As the digital economy continues to grow, our kingdom will serve as a gateway connecting Asian enterprises with opportunities across traditional and digital financial markets. SGB is a testament to Bahrain’s pro-innovation environment and our ability to attract and anchor ambitious global enterprises.”

H.E. Khalid Humaidan, Governor of the Central Bank of Bahrain, commented: “SGB’s launch demonstrates Bahrain’s commitment to fostering innovation in financial services while upholding the highest regulatory standards. With SGB, Bahrain will serve as a crucial nexus that connects businesses around the world and bridges traditional and digital financial services.”

SGB is pioneering a new era of banking where everyone can easily access and manage digital assets alongside traditional assets within one integrated network. Underpinned by its compliance-first approach, SGB will serve as a vital link between mainstream financial services and the rapidly advancing digital asset economy, empowering the next billion users with access to the future of finance.

In early October SINGAPORE Gulf Bank (SGB) appointed former Goldman Sachs executive Ali AlShamma as chief financial officer and ex-Sygnum executive Elaine Leong as chief operating officer. These two hires reinforce the mission of SGB to provide frictionless interaction between digital and traditional finance, said the digital bank.

OKX, cryptocurrency exchange and global onchain technology company, will be utilizing Standard Chartered, cross-border bank connecting the world’s most dynamic markets, as a third-party crypto custodian for its global institutional business.

The custody agreement with Standard Chartered is a significant addition to OKX’s comprehensive suite of institutional services, which includes advanced trading capabilities, robust risk management tools and enhanced custody solutions. By leveraging Standard Chartered’s extensive global banking expertise and rigorous risk management framework, OKX aims to offer institutional investors a broader range of secure and reliable custody solutions.

OKX Global Chief Commercial Officer Lennix Lai said, “We selected Standard Chartered as an institutional custodian partner to enhance our offering and accelerate the integration of digital assets within the traditional financial ecosystem. Standard Chartered’s extensive global banking expertise and unwavering commitment to security aligns with our objective to provide exceptional crypto services and reinforces the confidence of our institutional clients in managing their digital assets.”

Standard Chartered Global Head of Financing & Securities Services Margaret Harwood-Jones said “We are committed to offering custodial services that meet the highest standards of safety and compliance. Serving as OKX’s third-party custodian allows us to extend our expertise into the evolving cryptocurrency sector, providing institutional investors with the assurance they require.”

This collaboration is expected to attract increased institutional participation in the digital asset market, contributing to a more mature environment for institutions globally. It aligns with the findings of a recently published OKX-commissioned research brief authored by Economist Impact, entitled “Digital assets as the new alternative for institutional investors: market dynamics, opportunities and challenges,” which highlights institutional investors’ view that digital assets are an inevitable institutional opportunity. The report also finds that 80% of traditional and crypto hedge funds utilizing digital assets employ third-party custodians, highlighting strong demand for segregation of duties related to trade execution and asset custody.

Prior to this announcement Brevan Howard became the first client for Standard Chartered regulated crypto custody service out of DIFC. DIFC ( Dubai International Financial center) regulator DFSA ( Dubai Financial has granted a license to Standard Chartered for its digital asset custody service in the UAE. 

Weeks after WazirX, a cryptocurrency exchange was targeted by a cyber attack resulting in the theft of digital assets exceeding $230 million from one of their Multisig wallets, Mandiant Solutions, a cyber security firm and a Google subsidiary gave WazirX a clean chit.

As part of Mandiant Solutions’ investigation, one of their tasks was to determine if any of the three laptops used by WazirX team member for performing transactions had been compromised.

In its report published on August 14th, Mandiant stated, “We did not identify evidence of compromise on the three laptops that were used for signing transactions.”

Wazirx noted in its post dated August 19th , “While a detailed report is forthcoming, the findings largely indicate that the issue leading to the cyberattack originated from Liminal. The wallet that was attacked was managed using Liminal’s digital asset custody and wallet infrastructure.”

A spokesperson for WazirX said, “We have full faith in the investigating agency and shall cooperate with them to the fullest extent. We are actively working on recovering the stolen funds and are hopeful that those responsible will be brought to justice.”

Liminal custody explains stance

Given that Liminal Custody is a regulated crypto custodian in the UAE having acquired the Financial Services Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) and is currently seeking a license from Dubai through VARA, Lara on the Block asked Liminal for their feedback on the WazirX incident.

Liminal Custody statement (provided via email) stated, “It is pertinent to note that the client in question is using our self-custody wallet infrastructure software and not any custody service, regulated or otherwise. It is also important to understand that this incident occurred in India and is unrelated to the UAE, managed custody, regulated custody, or ADGM.”

Liminal Custody goes on to note, “In the self-custodial wallet service, they are the custodians of the assets as they have complete access to all the wallets and funds at all times. Furthermore, they are the sole initiators of all transactions on their wallets and also have recovery kits and backup kits to gain complete access to their wallets in the event that Liminal were to not exist for any reason. This is a standard and default feature of all self-custodial wallet infrastructure products.”

Liminal has also just provided Lara on the Block with an updated statement on WazirX post on August 19. Liminal Custody states, We cannot comment on the statement put out by WazirX, due to the lack of any information on the scope and methodology of the audit they have conducted. Having said that, if one were to go by the information they’ve shared, this actually raises serious questions on the security of their network infrastructure, operational custody controls and overall security posture, given that they were the custodians for 5 of the 6 keys.”

Liminal adds, “As far as our front-end and UI is concerned, our preliminary audit reports categorically indicate no breach in our front-end or UI. Please note that we have empaneled more than one reputed independent auditors to conduct forensic analysis and our detailed reports are expected to arrive within this week. We are confident that the Liminal front-end and UI were not compromised and the report and findings will be shared as soon as they are made available to us. It is unfortunate that this is being made out into a Liminal vs WazirX social media battle while so many users continue to suffer. In the interest of absolute transparency at our end, we have empaneled more than one reputed auditor and are open to empaneling additional auditors, including the likes of Mandiant to conduct the UI audit as well.”

Liminal Custody in MENA

With regards to their operations in the MENA, Liminal Custody states, “ In the MENA region, we provide regulated custody services where Liminal holds all the private keys and leverages its expertise to provide robust security and compliance with international security certifications, including CCSS Level-3 QSP, ISO 27001 & 27701, and others, which underscore our unwavering commitment to security.”

Finally in their statement to Lara on the Block Liminal Custody states, “ We unequivocally state that Liminal’s platform, infrastructure, wallets, and assets remain completely secure and both our platforms continue to process transactions and withdrawals seamlessly.”

Liminal Custody is doing its own investigation

In July 2024, Liminal published a statement staring that the recent security breach suffered by WazirX, underscores the urgent need for robust security measures and investor protection across the industry. This wallet, independently created and subsequently imported onto the Liminal platform, was compromised on July 18. Our preliminary investigation points to a customer level compromise via a sophisticated intrusion. They had stated that Liminal’s platform, infrastructure, wallets, and assets remain completely secure.

Liminal had announced its engagement of independent CERT-certified, third-party experts to conduct thorough forensic audits which will be backed by published reports while engaging with relevant authorities.

However soon after this statement WazirX accused Liminal Custody of failing to secure the multisig wallet, and WazirX ended its Custody Relationship With Liminal moving funds To New Multisig Wallets.

The blaming game is not important getting back users money is

Whoever is to blame, on X, Top Asian Crypto influencer, WISE ADVICE expresses what’s on the mind of everyone. He notes, “It’s been more than a month since WazirX got hacked, Still, nobody is taking responsibility for the hack. Earlier, Liminal blamed WazirX for this hack. Now WazirX is blaming Liminal for this hack. But that’s not the main question; the main question is when users are going to get their money back.”

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.

Liminal Custody, a digital asset custody and wallet infrastructure provider has opened an office in Dubai as it awaits its license from VARA after receiving its license in ADGM in Abu Dhabi. The Dubai office will be located in Sheikh Rashid Tower in Dubai within the Dubai World Trade Center Free zone.

According to the press release, this move marks a significant milestone for Liminal as it seeks to cement its role as a key player in the rapidly growing digital asset industry within the MENA region, known for its innovation and institutional adoption.

The expansion enhances Liminal’s existing presence in the region, which includes a Financial Services Permission (FSP) licence from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).

“Our expansion to Dubai, along with our Initial Approval(IA) for a VASP licence from VARA, highlights Liminal’s commitment to fostering the secure growth of the regional digital asset ecosystem,” said Amir Tabch, CEO Middle East at Liminal Custody. “We are eager to collaborate with established entities like DWTC and work closely with VARA to enhance our service offerings. This strategic move enables us to provide comprehensive custody solutions tailored to the evolving needs of Dubai and the broader MENA market.”

In May Liminal Custody acquired the Financial Services Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) allowing it to operate as a regulated crypto custodian within the Middle East.

HexTrust another crypto custodian has already received its license from VARA