96 firms want to get into UAE DFSA tokenization sandbox

96 firms want to get into UAE DFSA tokenization sandbox

 96 firms have shown interest in participating in UAE’s Dubai Financial Services Authority ( DFSA) tokenization regulatory sandbox. As per the DFSA announcement, the launch of the sandbox is part of DFSA’s strategy to support responsible financial innovation within the Dubai International Free Center.

The Tokenization Regulatory Sandbox forms part of the DFSA’s Innovation Testing License program and supports the regulator’s broader commitment to fostering innovation while maintaining market integrity and protecting investors. Expressions of interest came from a diverse range of sectors that are exploring the tokenization of financial assets and instruments, including those associated with the tokenization of shares, bonds (including Islamic bonds (sukuk)), units in a fund, and the trading and safe custody of those assets – reflecting the broad potential of tokenization across the financial ecosystem.

Interest came from both financial institutions and startups.

Justin Baldacchino, Managing Director, Supervision, DFSA, said, “We are excited to see such strong interest in the DFSA’s Tokenisation Regulatory Sandbox and to talk about it at the Dubai FinTech Summit. This momentum supports the DFSA’s strategic commitment – and aligns with the Dubai Economic Agenda D33 goal – to position Dubai among the world’s top four global financial hubs by 2033. The sandbox marks a new chapter in our engagement with innovative financial technologies, enabling firms to safely test tokenized solutions in a transparent, measured, and responsible manner, within a well-regulated environment, without being subject to the full suite of regulatory requirements that would otherwise apply.”

The DFSA’s themed sandbox approach enables targeted supervision, constructive regulatory dialogue, and the development of tailored policy responses to emerging financial technologies while fostering responsible innovation in the market.

Following the Expressions of Interest stage, selected firms will be invited to apply for an Innovation Testing License and enter a live testing phase under DFSA oversight, where they can refine their offerings while addressing critical areas such as investor protection, transparency, and financial stability. Upon successful completion of the program, firms may apply to transition to a full, unrestricted license, or withdraw their Innovation Testing License.

Prior to the launch of the tokenization regulatory sandbox, the DFSA has launched an explainer guide for its Innovation Testing License. The Innovation Testing License – the DFSA’s regulatory sandbox – is a restricted financial services license that allows eligible firms to test innovative financial products, services, and business models within a controlled environment with temporary modifications to existing regulatory requirements whilst being subject to close supervisory oversight. Launched in 2017, the Innovation Testing License remains a cornerstone of the DFSA’s approach to support the responsible development of financial technology solutions in the DIFC.

Designed as a practical tool for firms interested in applying for the license, the DFSA’s Innovation Testing License explainer guide offers clear and accessible information on how to engage with the DFSA’s regulatory sandbox, test innovative solutions, and navigate the path to full authorization. It outlines the purpose of the license, eligibility criteria, application process, and obligations firms must meet during the testing phase.

HashKey receives crypto exchange license in UAE

HashKey receives crypto exchange license in UAE

Asian based HashKey Group (“HashKey”), digital asset financial services group, has secured a Virtual Asset Service Provider (VASP) license from Dubai Virtual Assets Regulatory Authority (VARA) to provide both Virtual Asset Exchange Services and Virtual Asset Broker-Dealer Services within, and originating from, the Emirate of Dubai. The crypto exchange service will go live on May 19th 2025.

As per the press release, the license is part of HashKey’s expansion in the MENA region and will help to meet growing institutional needs. In January 2025, HashKey has announced it would soon be licensed in the UAE.

HashKey will offer clients several features such as USD and AED deposits and withdrawals, fiat on and off-ramping so that users can directly transfer USD from their bank account to HashKey Global MENAA’s fiat wallet. Standard Chartered will provide the fiat currency deposit and withdrawal services for the platform.

In addition HashKey will also be offering OTC services for the top 10 major tokens, through HashKey Global MENA, which will deliver regulated block trading with competitive all-inclusive pricing, ensuring transparent quotes and zero hidden fees for market-leading rates. While large orders benefit from instant execution, eliminating slippage risks, while flexible settlement options cater to institutional and HNWI liquidity needs.

“As a licensed platform, HashKey Global MENA embraces institutional needs by offering a regulated gateway for fiat-crypto transactions, backed by institutional-grade safeguards and strategic partnerships like Standard Chartered. Our regional expansion ambitions, with a strategic focus on the GCC, are rooted in empowering MENA’s institutions and HNWIs with seamless, cost-efficient access to global crypto markets, reinforcing the UAE’s position as a hub for blockchain innovation while prioritizing compliance and client protection at every step,” said Sherif Sanad, Country Manager, HashKey Global MENA.

As for the future, HashKey Global MENA will deliver not just virtual asset trading services, but aims to evolve and develop innovative digital asset products, designed and delivered within VARA’s robust regulatory and compliance framework.

HashKey Group already holds digital asset-related licenses from regulators in Hong Kong, Singapore, Japan, and Bermuda, as well as VASP registration in Ireland and is actively pursuing a MiCA license in the EU.

Agile Dynamics to build quantum resistant blockchain for Abu Dhabi government

Agile Dynamics to build quantum resistant blockchain for Abu Dhabi government

Agile Dynamics, a UAE based consulting firm, will work to develop a sovereign quantum resistant blockchain infrastructure with Abu Dhabi Department of Government Enablement in UAE. Agile Dynamics has been selected as the program’s strategic partner.

As per the announcement, the transformative project quantum program is spearheaded by Abu Dhabi’s Government with the threefold aim to redefine the emirate’s digital economy, accelerate its growth, and solidify its position as a global leader in next-generation technology adoption.

Quantum is considered as one of the most promising technologies that can enable ground-breaking advancements in business and society.

As part of the partnership with Agile Dynamics, the consulting firm will provide crucial expertise in blockchain strategy, decentralized trust models, and innovative tokenization frameworks. The collaboration will concentrate on three pivotal technical objectives, forming the bedrock of Abu Dhabi’s next-generation digital strategy.

Architecting a Sovereign, Quantum-Resistant EVM-Compatible Layer 1 Blockchain to incorporate cutting-edge post-quantum cryptographic primitives, ensuring enduring security and resilience against future computational threats, safeguarding the nation’s digital assets and critical data for decades to come.

Creating an Integrated DeFi Framework that will unlock new financial paradigms, aiming to streamline international trade finance through transparent and instantaneous settlements, and foster innovation in financial services.

Assessing the Feasibility of an Institutional-Grade Foreign Direct Investment (FDI) as-a-Service Tokenization Ecosystem which will explore novel mechanisms for attracting and managing investment, further bolstering Abu Dhabi’s economic dynamism.

In a LinkedIn post, Agile Dynamics noted that the UAE has the potential to dominate the blockchain economy. Their forecast position blockchain as the backbone of a decentralized trust economy driving $456 billion in non-oil GDP by 2031.

In terms of use cases, the UAE will pioneer use cases like tokenized FDI, AI-auditable governance, and stablecoin remittances. With quantum-resistant infrastructure and strategic alliances, Abu Dhabi has the potential to redefine digital trust worldwide.

Paul Lalovich, Managing Partner at Agile Dynamics, emphasized the profound technical significance of the initiative stating “Abu Dhabi is not merely implementing a blockchain strategy; it is architecting a complete, future-proof trust infrastructure stack. Our design will integrate post-quantum cryptographic primitives, embed protocol-level regulatory compliance, and champion cross-chain interoperability standards. This will create a resilient foundation for both domestic applications and a new era of international digital trade, positioning Abu Dhabi’s infrastructure as a blueprint for decentralized trust that can serve as a global benchmark.”

The Agile Dynamics team brings specialized expertise in the domain to the engagement, led by leaders and blockchain experts Paul Lalovich (blockchain business architectures), Ema Vukovic (blockchain business architectures), Yilmaz Yadırgı (tokenization frameworks), Philipp Kishkovarov (AI-blockchain integration), and Nikola Mandic (blockchain ecosystem architect).

They are steered by affiliate expert partners Henrik von Scheel (digital economy design), Srđan Vukmirović (quantum-resistant cryptography), and Darko Capko (blockchain technology architecture).

Michael Saylor says Gulf Banks could be Bitcoin custodians

Michael Saylor says Gulf Banks could be Bitcoin custodians

Michael Saylor an American entrepreneur and business executive and the executive chairman and co-founder of MicroStrategy, a company that provides business intelligence, mobile software, and cloud-based services in an interview with Al Arabiya English notes that GCC banks could become trusted digital asset custodians, while he calls for their sovereign wealth funds to buy Bitcoin.

In the Al Arabiya English interview with Hadley Gamble, he works to convince the globe on why Bitcoin is the center of the AI economy, and why countries including KSA, Kuwait, Qatar, and UAE as well as the rest of the world should buy Bitcoin. He then states that GCC region with its low taxation, its digital asset regulations, and its trusted banking sector could become the trusted digital asset custodians for the digital economy.

He starts with the fact that there is a change in the status quo and how digital capital is a no brainer, it is like Facebook for money, Google for money because Bitcoin is digital gold and a non-sovereign store of assets, allowing investors to avoid counter party risk.

He adds that it is a safe haven better than gold, 10X more valuable than gold and is growing in value at 20% a year. He says, “It is the best investment idea in the world, and people just want to keep their money, usually doing it through buying real estate, equities, collectible, which all have risk factors.

With increased uncertainty and losing confidence in governmental currencies which are facing a lot of risk because of technology, politics and monetary policy, they will trade it in for Bitcoin. For him Bitcoin is a hedge growing by 55% 2 trillion now to 20 trillion in four years and 280 trillion in 2045.

He goes on to note that this is the dominant network. He also states that USD stablecoin demand is increasing

His case against Gold

He believes that given gold is not as liquid as money, and not a sellable commodity like it was 1000 years ago, it isn’t fast enough. He explains, “400 million companies across the globe cannot settle with gold. To settle $10 billion of gold it would take 10 years.” According to Saylor, Bitcoin represents digital gold, the most liquid and fungible commodity asset, better than gold that can be teleported in seconds, put on 5 billion smart phones, with 0% inflation.

He adds that cash settlement is always difficult but with Bitcoin you can settle billions every four hours. He calls it the “perfect money, perfect capital, that will build an entire digital economic system.”

When asked why people aren’t using it to buy stuff, he simply states, “You don’t pay for things in capital. Money has two aspects high frequency money like the dollar and Euro, and Peso which people don’t hold for more than four years, with local currencies being held only for weeks or months especially in countries like Egypt and Lebanon. 90% of people don’t save in dollars, they save in land, real estate, equities, and Bitcoin.

He also believes that once the United States regulates stablecoins its market cap will go up to $2 trillion.  

The digital economy fused with AI will need Bitcoin

He reasserts what we all know already that the future is digital. He believes everything will be tokenized starting with the dollar. According to him given that AI will be prevalent and it will be smarter and faster, “your AI will want to move your money for better investment opportunities 18 million times an hour.” The intelligent economy will bypass regulated economies. So countries need to advance their regulatory environments, while ensuring ethically responsible friction free environment.

How the GCC countries can benefit

There are many ways countries like Saudi Arabia, Kuwait, Qatar and UAE can benefit from the rise of digital economies and Bitcoin. First according to Saylor, they could become the repositer of digital energy which is more important for the AI datacenters than it is for Bitcoin. He states, “The AI economy will need massive amounts of energy 400 GWs of electrical power to move forward. If an economy doesn’t have electricity it doesn’t think. He believes nuclear technologies will power the intelligent economy.

He calls on sovereign wealth funds in GCC to invest in Bitcoin, telling them to buy as much as they can buy. “You ought to buy as much as you want money, returns of 29% a year for 21 years.

He also adds that the GCC banking sector could become institutional custodians for Bitcoin. He explains, “digital currencies will want to find a home that has favorable tax regimes, favorable regulations and they will be looking for institutional grade custodians, banks that I trust in the UAE, Qatar, or Kuwait where I can custody my bitcoin, a Bitcoin custodian Bank.”

He adds that we have yet to see who will emerge as a digital Switzerland.

The Risks

According to Saylor there are no risks or impediments to Bitcoin except the regulatory ones.

While he mentions that Armada Spanish fleet hit Gold, he doesn’t mention that a lack of internet could hit Bitcoin, or the fact that if Bitcoin becomes centralized into the hands of the few, it defeats the purpose of the technology, or even the fact that if quantum computing prevails, the security of the Bitcoin network could be at risk.

So while he calls for sovereign wealth funds to buy Bitcoin as he create security products for investors of Bitcoin, and while Micro Strategy invests billions of dollars into Bitcoin, the risks are there even if smaller than the risks of 20th century money.

So yes it might be a great idea for sovereign funds to diversify their portfolios into Bitcoin, it might not be a good idea to try and buy so much that Bitcoin becomes a new central bank digital currency, and definitely not the smartest idea to have banks custody the Bitcoin!

eToro integrates UAE pass for onboarding

eToro integrates UAE pass for onboarding

eToro, UAE regulated crypto trading and management platform, has integrated UAE PASS, the UAE’s national digital identity platform, into its onboarding process, further localizing its product for the UAE market.

As per the announcement, the new feature allows UAE-based users to register on eToro using the UAE PASS app, which pulls verified Proof of Identity (POI) and Proof of Address (POA) directly from the government’s digital identity system. It simplifies the verification process significantly, enabling faster account creation, enhanced security, and a smoother experience for new users.

George Naddaf, Managing Director at eToro MENA, stated, “This is a major milestone in simplifying the onboarding experience and advancing in our vision to open the global markets for everyone to trade and invest in a simple and transparent way. By integrating a trusted local identity solution, we’re removing key friction points and adding another layer of trust and convenience for our UAE community.”

According to a recent survey by eToro, 87% of UAE retail investors now rely on fintech platforms to manage their finances. Additionally, 26% use only fintech providers, while 36% use them for the majority of their activity, reflecting the country’s rapid shift toward digital-first financial solutions.

This initiative adds to eToro’s broader localization initiatives in the region, including the opening of its Abu Dhabi office, the addition of stocks listed on the Abu Dhabi Securities Exchange and Dubai Financial Market.

Coinbase enters UAE after acquisition of Deribit

Coinbase enters UAE after acquisition of Deribit

Coinbase, the largest publicly traded cryptocurrency exchange, announced that it will be buying derivatives exchange Deribit for $2.9 billion deal to as it expands into the crypto options market, but the deal also means it will have a foothold in the UAE.

Deribit is one of the exchanges that has received a full license in the UAE back in December 2024, allowing it to offer spot and derivatives trading in the UAE under Deribit’s Dubai-based entity, Deribit FZE. It received its license from Dubai’s Virtual Asset Regulatory Authority after it had its conditional license in April 2024.

Coinbase noted that the acquisition would accelerate their Global Derivatives Strategy. They stated, “With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate our international growth strategy. Our complementary footprint strategically positions Coinbase within the sizable global crypto derivatives markets.”

The cash-and-stock deal will allow Coinbase to offer crypto options to its international clients. Widely used for hedging, options can be a key source of stability as their demand typically holds up during bouts of volatility.

The deal consists of $700 million in cash and 11 million shares of Coinbase’s Class A common stock, the company said, and is subject to regulatory approvals and other customary closing conditions and is expected to close by year-end.

The post also noted that the deal would create the Most Comprehensive Institutional Derivatives Platform given that Deribit is the global leader in crypto options. the blog stated, “Deribit’s robust options platform complements Coinbase’s rapidly growing US futures and international perpetual futures businesses, completing our derivatives offering. This is an important step toward our goal of providing traders access to spot, futures, perpetual futures, and options trading – all in one seamless, capital-efficient platform.”

The acquisition will also make Coinbase the global leader in crypto derivatives by open interest and options volume. Deribit facilitated over $1 trillion in trading volume last year across key markets ex-US, with strong demand from institutional and advanced traders. We believe crypto options are on the cusp of significant expansion, similar to the equity options boom of the 1990s.

Finally Coinbase notes that Deribit will immediately enhance profitability and add diversity and durability to their trading revenues upon close.

“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” said Deribit CEO Luuk Strijers. “As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market.”

Ripple backed Hidden Road receives in principle license approval in UAE

Ripple backed Hidden Road receives in principle license approval in UAE

Ripple backed Hidden Road, which offers traditional and digital asset brokerage services, has received In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM to operate as a regulated financial services firm.

Pending final regulatory approval, Hidden Road will be authorized to offer clearing and prime brokerage services across its global suite of traditional and digital asset products to institutional investors in the UAE.

“Receiving our IPA from ADGM marks a significant milestone for our business,” said James Stickland, UAE CEO, Hidden Road. “ADGM’s high regulatory standards make it a key market for institutional growth.”

Hidden Road Partners CIV NL B.V. is licensed as a MiFID investment firm and as a Crypto-Asset Service Provider (“CASP”) by the Netherlands Authority for the Financial Markets (AFM). It is also an authorized a AMLD5 and MiFID investment firm by the UK Financial Conduct Authority; as well as a Commodity Futures Trading Commission (CFTC)-registered Futures Commission Merchant (FCM), a Financial Industry Regulatory Authority (FINRA)-member broker-dealer, and a member of the National Futures Association (NFA) and Fixed Income Clearing Corporation (FICC).


“Our goal from day one has been to equip clients with seamless access both to traditional and digital markets,” said Noel Kimmel, President at Hidden Road. “We continue to actively pursue regulatory approvals around the world to deliver on that commitment, recognizing the confidence and transparency that follows when operating under clear regulatory frameworks.”

Arvind Ramamurthy, Chief of Market Development at ADGM, said, “ADGM congratulates Hidden Road on receiving its IPA from the FSRA to operate as a regulated financial services firm. The expansion of their services within the international financial centre is a testament to the immense opportunities available within Abu Dhabi. We look forward to Hidden Road receiving their Financial Services Permission (FSP) and their contribution to ADGM’s dynamic ecosystem.”

Hidden Road’s IPA from ADGM’s FSRA follows its recent definitive agreement on April 8, 2025, to be acquired by Ripple, a leading provider of digital asset infrastructure for financial institutions, for $1.25 billion. With the backing of Ripple’s significant balance sheet, Hidden Road will exponentially expand its capacity to service its pipeline and become one of the largest non-bank prime brokers globally. The deal is expected to close in the coming months, subject to regulatory approvals.

UAE based Aspen Digital seeds CoinBase Bitcoin yield fund

UAE based Aspen Digital seeds CoinBase Bitcoin yield fund

UAE regulated Aspen Digital, a digital asset manager seeds Coinbase Asset Management fund, which will be administered by Apex Group a leading financial services provider. The fund which will be delivered by Apex Malta is specifically tailored for digital asset strategies and its newly announced Coinbase Bitcoin Yield Fund (CBYF).

As per the press release, Aspen Digital will also serve as an exclusive wealth and distribution partner in the UAE and Asia.

This mandate further strengthens Apex Group’s strategic alliance with Coinbase AM and reflects the growing institutional adoption of digital assets, driven by the increasing demand for innovative yield-generating projects like CBYF.

Peter Hughes Apex Group’s Founder and CEO, noted, “We’re extremely pleased to strengthen our alliance with Coinbase AM to support the launch of CBYF this month. This fund further expands global access to meet the growing demand for bitcoin yield. Apex Group has ten years of expertise in crypto fund administration and is committed to innovation. We also have the ability to deliver secure, reliable and scalable solutions and pride ourselves on our capacity to handle the complexities of digital asset fund administration transfer agency and distribution while adhering to fiduciary standards.”

Matt Lundy, Coinbase AM’s COO and CRO, added, “The recent launch of the Coinbase Bitcoin Yield Fund has been met with incredible demand from institutional investors looking to earn yield on their Bitcoin holdings. Apex Group’s experience in the digital asset space and innovative thinking have allowed us to seamlessly deliver this unique international, institutional-grade Fund with Apex Group’s best-in-class administrator services to investors. We are thrilled to continue to build on our relationship with Apex Group.”

Crypto.com teams up with UAE Emarat Energy company to offer crypto payments

Crypto.com teams up with UAE Emarat Energy company to offer crypto payments

Crypto.com exchange, a regulated crypto exchange operating out of Dubai UAE, has partnered with Emarat Energy Company to offer crypto payment options at select Emarat service stations. As per the LinkedIn post the expansion depends on regulatory approvals and customer demand.

Emarat runs more than 155 service stations across the UAE. The setup of crypto fuel stations signals a shift towards new payment methods. This aligns with industry moves toward contactless payments and better customer service. Emarat hopes to modernize its retail model and appeal to tech-savvy consumers. It also aims to boost its image among digitally aware customers.


The partnership will see Crypto.com integrated at an initial 10 service stations, with plans to progressively expand the integration across the Emarat service station network.

Additionally, through Project Landmark—the first project providing naming rights for fuel stations in the world by Emarat, Crypto.com and Emarat will unveil the Crypto.com Emarat Service Station at Emarat’s Al Ameen Station in Al Wasl Road, a signature service station branded by Crypto.com and supported by the Crypto.com integration.

“Further enabling the utility of cryptocurrency is central to our vision at Crypto.com,” said Mohammed al Hakim, President of Crypto.com UAE. “The UAE is a cryptocurrency market leader, and we are excited to partner with Emarat, the region’s leading petroleum brand and serving tens of thousands of customers every day, in bringing digital assets into its next era.”

Ali Bin Zayed Al Falasi, Chief Retail Officer & Senior Vice President – Marketing at Emarat, said, “At Emarat, we are constantly exploring new frontiers in innovation and customer experience. This partnership with Crypto.com introduces a new era of convenience and possibility for our customers, while strengthening our position as a future-focused brand. Together, we’re bridging the gap between energy retail and emerging financial ecosystems.”

Crypto.com users and Emarat customers will be able to enjoy additional benefits of the partnership, having exclusive offers and a mutual promotional program to uplift customers’ experience.

The UAE has been at the forefront of Blockchain and crypto, with many real estate developers offering crypto payments and most recently one of the biggest investments in the UAE, the $2 billion investment into Binance being carried out using a stablecoin.

Kappa Lab for digital assets opens operation in UAE

Kappa Lab for digital assets opens operation in UAE

UK based Kappa Lab previously known as CrypPro, a digital assets market maker, has opened a new operational base in Dubai UAE at the DMCC Crypto center. The announcement comes after its participation at Token 2049 in Dubai this April.

Speaking to Anis Akl, Founder of Kappa Lab, he noted, “We selected Dubai as the location for Kappa Lab’s new office for several strategic reasons. First, its regulatory environment as Dubai offers a well-established, business-friendly framework that supports innovation and growth. Secondly, the city’s overall value proposition has proven highly attractive to both our existing team and prospective talent.”

He also stated that one of the reasons was Dubai’s position as a global business hub—bridging East and West—provides a strong strategic advantage for Kappa Lab, which already has an established presence in the UK and Europe and is expanding its engagement in Asian markets.

He added that they plan to apply for a crypto broker dealer license with Dubai’s Virtual Asset Regulatory Authority. He says, “We do plan to apply for a broker-dealer license.”

This announcement comes as more and more crypto entities have been granted licenses by VARA in the UAE. Most recent are Gate.io, as well as BurjX which received an in-principle approval from ADGM.