Zodia Custody acquires UAE crypto custodian Tungsten

Zodia Custody acquires UAE crypto custodian Tungsten

Backed by Standard Chartered Bank, and SBI Group, Zodia Custody, a global crypto asset custodian has completed its acquisition of UAE regulated Tungsten Custody Solutions, crypto custodian. In April of 2025, Zodia Custody had announced it was seeking to acquire Tungsten.

As per the X post, Zodia custody noted that this is a strong step in their expansion plans into the MENA region as they will benefit from the license that Tungsten already has within Abu Dhabi’s ADGM.

“Zodia Custody’s acquisition of Tungsten reflects our long-standing and ongoing commitment to the UAE,” said Dominic Longman, Global Head of Markets at Zodia Custody. “We are excited to deepen our presence in a market that is leading digital asset regulation through meaningful collaboration and revenue synergies with businesses operating under its authority. We hope to replicate this type of relationship across the markets in which we operate.”

“From day one, our ambition with Tungsten was to help build a custody platform that meets the highest global standards while being deeply rooted in the UAE’s regulatory frameworks,” said Mohamed Hamdy, Managing Partner at Further Ventures. “Zodia Custody’s acquisition is a validation of that vision and a major step forward for institutional digital asset infrastructure in the region. We’re proud to join forces with a partner that shares our conviction in the future of compliant, secure, and borderless finance.”

This announcement comes on the same day that Figment partnered with Tungsten to offer digital asset staking services for institutional clients in the region.

1 out of 10 tech startups in MENA are crypto startups

1 out of 10 tech startups in MENA are crypto startups

The ClearWorld 2025 MENA Early Stage Handbook has come out showcasing that there are 480 crypto startups in MENA with one in every 20 startups in MENA being a crypto one, and one in every 10 startups being a crypto one if you filter out non-tech startups. As such within the tech startup ecosystem, one in every 10 tech startup is a crypto startup. As of April 2025 15% of active ventures in MENA are crypto startups.

Of the total of 3,600 startups in MENA, half of them are in the UAE, with 65% of the 3,600 startups in pre-seed phase. There has been a multi-year downtrend in new startup formation, coupled with increased investment activity, which is aging the structure of the market.
With less new startups coming to the market, and investor demand remaining high, older startups are getting a better chance for a “second look” from the investors.

The ClearWorld Handbook also notes that by 2026, 21% of pre-seed startups will be written off and join the pool of zombie startups. This means 209 pre seed startups who would have spend significant time without funding that is becomes extremely unlikely for them to get new VC Funding.

The report also adds that MENA Venture Market’s Middle of the Funnel Seems Stuck. The number of Series A startups in MENA
remained unchanged since 2024. In fact, it dropped everywhere outside Saudi. In Saudi, Series A showed the smallest growth out of all stages. Only 26% of startups make it to seed stage with Saudi startups enjoy funding coverage much higher than MENA (41% vs 29%)
Egypt’s high survival rate at Pre-seed stage is in large due to accelerators who are affiliated with VCs and corporations, though it would
come back to hurt Egypt’s survival rates when time is due for these startups to raise Series A as per the report.

However if nothing moves, 30% of MENA’s Viable Series A Startups Will Be Written Off By 2026. As more Series A startups spend more
years stuck in the system, their prospects of raising growth capital diminish. At the current rate, a sizable move affecting 10-27 Series A startups might be expected soon, either progressing to Growth Stage or being written off in relatively ‘large’ quantities.

MENA now has more active investors than it has new startups. MENA is going through a critical and unique phase. The report states that this could be resolved if there is an easing of classic conditions placed on tech founder such as stop requesting founders quit their day job and take immense risk during a global macro economic challenge. Another solution is utilizing AI for more efficient early stage cutting short prototype development time and combining Seed stage with Series A stage in a single step. The report states, “For this, accelerators and incubators can take the lead and train a new wave of founder-friendly AI-empowered entrepreneurship.”

Currently 80 percent of AI startups are in UAE and KSA, 150 in UAE, and 110 in KSA. AI startups grew between 2024 and 2025 because according to report, many startups rebranded to AI startups with 12% of Egypt’s AI startups relocating to UAE and Saudi Arabia.

Seed round raises are usually between 500K to $3M with only 15% of seed companies getting funding between $3M to $7M. The report goes into more detail on each round and the funding offered in each.

In conclusion, while the MENA region has grown in terms of investors, startups are still small in numbers in comparison. Yet we are seeing more incentives for startups to build in the region with deep tech studioss being launched, governmental investment in AI, Blockchain, digital assets and more.

UAE Web3 Fund Aqua 1 invests in World Liberty Financial tokens

UAE Web3 Fund Aqua 1 invests in World Liberty Financial tokens

Aqua 1, Web3-native fund which seems to have been created recently, and on its website does not state who its team is announced it invested $100 million into Trump’s World Liberty Financial (WLFI) token, as a means to participate in the governance of the DeFi platform. The partnership will seek to synergize USD1 infrastructure to ignite adoption across commercial payment gateways and treasury management systems.

As per the announcement, the commitment will help accelerate the creation of a blockchain powered financial ecosystem centered on blockchain, Real World Asset (RWA) tokenization, and stablecoin integration.

The authors go on to noted, together, WLFI and Aqua 1 are building the definitive bridge between legacy systems and blockchain innovation, an institutional-grade marketplace delivering unparalleled access to traditional assets.

“We’re excited to work hand-in-hand with the team at Aqua 1,” said Zak Folkman, Co-Founder of World Liberty Financial. “Aligning with Aqua 1 validates our blueprint for global financial innovation, as we have a joint mission to bring digital assets to the masses and strengthen our nation’s standing as a champion and leader of cryptocurrency and blockchain technology.”

“WLFI and Aqua 1 will jointly identify and nurture high-potential blockchain projects together,” stated Dave Lee, Founding Partner of Aqua 1. ( no LinkedIn profile available)“WLFI’s USD1 ecosystem and RWA pipeline embody the trillion-dollar structural pivot opportunity we seek to catalyze, where architects merge traditional capital markets with decentralized primitives to redefine global financial infrastructure.”

Beyond the U.S. market, Aqua 1’s global investment and compliance teams will assist WLFI in expanding across South America, Europe, Asia, and emerging markets to accelerate digital asset ecosystem development.

Strategically, WLFI also plans to support the launch of Aqua 1’s Aqua Fund, a UAE-domiciled investment fund developed in partnership with leading regional stakeholders. The fund will be dedicated to accelerating the Middle East’s digital economy transformation through advanced blockchain infrastructure, artificial intelligence integration, and global Web3 adoption.

Aqua Fund aims to serve as a gateway for capital, talent, and technology to converge, positioning the region at the forefront of the next digital wave. Aqua Fund intends to partner with a secondary trading venue within ADGM to list the fund and facilitate secondary market liquidity for investors.

Furthermore, both parties plan to jointly develop and incubate BlockRock (https://x.com/BlockRock_rwa), an institutional RWA tokenization platform, focused on digitizing and integrating premium traditional assets into the Web3 ecosystem.

This is not the first time a UAE entity engaged with World Liberty Financial when it was announced that MGX, an Abu Dhabi tech company invested $2 billion in Binance crypto exchange, using the USD1 stablecoin. Binance listed World Liberty Financial USD (USD1) and opened trading for the following spot trading pair USD1/USDT.

UAE Omining crypto mining entity expands operations to Kenya

UAE Omining crypto mining entity expands operations to Kenya

UAE based Omining, the crypto mining infrastructure company operating under the DMCC ecosystem, has expanded operations into Kenya with new established facility in the Kenyan Special Economic Zone (SEZ) makes it one of the first large-scale Web3 deployments in East Africa by a UAE-based entity.

The company’s entry comes as global technology players, including Microsoft, expand into Kenya’s SEZ framework, with Google and Amazon reportedly completing due diligence for future presence in the region. Omining’s new facility will serve as its operational hub, with a 90-megawatt capacity currently being expanded to 200 megawatts.

It leverages Kenya’s stable electricity costs, investor-friendly regulation, and growing global relevance. Naivasha, where the plant will run, offers other key advantages: a year-round temperate climate ranging from 6 to 30 degrees Celsius, a 100% tax-free regime within the SEZ, and a currency whose value is closely aligned with the US dollar – much like Dubai.

“We’re witnessing the beginning of a revolutionary era – the democratization of cryptocurrency mining. By enabling anyone to mine a currency without government control, we’re participating in a groundbreaking movement that’s reshaping the world’s financial landscape,” said Francesco Colucci, Managing Partner at Omining.

In under-electrified markets, crypto mining operations can play a broader role. Kenya has made significant strides in renewable energy generation, yet in rural areas, grid expansion often remains economically infeasible due to low demand. Omining’s consistent, large-scale energy consumption and investments in the region can help stabilize long-term revenue for utility providers. This, in turn, adds to the long-term health of both infrastructure and access.

“The infrastructure we’re building is about more than just scale,” said Lorenzo Calligaris, CTO at Omining. “You need to be in environments that understand what you’re doing and let you move fast, but responsibly. That’s what we’ve had in Dubai, and now we’re applying that playbook in Kenya.”

Kenya’s positioning as an SEZ destination is rapidly gaining traction across multiple industries because of a skilled labor pool, and growing integration with global digital trade systems. Recent public commentary from Kenneth Chelule, CEO of the SEZ Authority, referenced the potential of crypto mining firms like Omining to contribute to SEZ employment and energy monetization.

Recently Phoenix Group also entered the African continent with operations in Ethiopia. expanded its operations into the burgeoning African market with the acquisition of an 80-megawatt (MW) power purchase agreement (PPA) in Ethiopia. This landmark deal, forged in partnership with Abu Dhabi-based cybersecurity firm Data7, marks a significant step in Phoenix Group’s global diversification strategy.

A new crypto fiat digital Bank to be launched out of Abu Dhabi

A new crypto fiat digital Bank to be launched out of Abu Dhabi

BipTap a global banking offering crypto and fiat banking services, has partnered UAE Al Fardan Ventures to launch an Abu Dhabi based Digital Bank BipTop.

BiTop offers complete solution integrating traditional banking with blockchain and cryptocurrency for using, managing and transferring crypto and fiat internationally using cards, offshore bank accounts, and wallets. The digital bank as per the press release will be both a wholesale and retail bank with B2B digital banking solutions.

The two parties are in the process of securing the required licenses to set up the operations in UAE.

As part of this development, the board has appointed Mr. Mohammed Ebrahim Al Fardan as Regional Managing Director, responsible for all Middle East operations and Global Technology Operations (GTO). Mr. Al Fardan brings decades of leadership in high-tech investments and innovation strategy, ensuring the digital bank will be positioned at the forefront of financial evolution.

Al Fardan noted that this is a significant partnership as it helps to reimaging global banking. He stated, “It aligns with our broader vision and upcoming investments in a global crypto liquidity platform and an AI-powered crypto trading ecosystem, which we plan to announce separately at the appropriate time.”

“This isn’t just a digital bank,” Jonathan Low shared. “It’s a financial revolution. By combining Abu Dhabi’s strategic location and Al Fardan Venture’s legacy in high-tech innovation and banking relationships all across the UAE and Middle East, with Biptap’s plug-and-play scalable infrastructure, we are democratizing banking access for the 21st century and beyond.”

Jonathan Low, CEO and Founder of Biptap, spearheaded the creation of the world’s first true Omni Banka modular, borderless system designed to be the ‘Airbnb of Banking,’ connecting users and businesses with the banks worldwide.

Already the UAE has several digital banks that are working in the crypto domain, including Zand Bank, Liv Bank, MBank, and Wio Bank. This announcement comes as the United States opens up its banking sector to crypto directly. The USA Federal Reserve Bank recently killed “Reputational Risk” rule that banks used to block crypto companies.

FED Chair Jerome Powell said, “Banks are perfectly able to serve crypto customers, as long as they manage the risks.”

MEVP and G42 invest in UAE AppliedAI series A $55 million round

MEVP and G42 invest in UAE AppliedAI series A $55 million round

Middle East Venture Partners (MEVP), a large MENA venture capital firm has invested in AppliedAI as part of the company’s Series A funding round alongside G42, Bessemer Venture Partners, and strategic partner e&. The investment completes AppliedAI’s oversubscribed $55M Series A.

AppliedAI, a UAE based company has developed an AI-powered automation platform, dubbed Opus, that transforms back-office operations in highly regulated industries, including financial services, healthcare, and government sectors. The company’s enterprise-grade solutions address critical digitization needs across the region.

“AppliedAI exemplifies the exceptional founders we back – talented entrepreneurs building innovative technology solutions that drive meaningful transformation in the Middle East,” said Walid Mansour, Co-CEO at MEVP. “Their deep understanding of regulated environments and proven enterprise traction make them a natural fit for our portfolio as we continue building global AI leaders from the MENA region, bringing forth innovation in tech and societies alike.”

The funding will accelerate AppliedAI’s international expansion while strengthening product capabilities and regional market presence. The company relocated from London to Abu Dhabi in 2022, establishing strong partnerships within the UAE’s growing AI ecosystem.

Equivator invests $8 million in GCC Related a loyalty rewards company

Equivator invests $8 million in GCC Related a loyalty rewards company

United Kingdom and Saudi Arabian Equivator, a premier alternative investment firm, has made a strategic investment of $8 million in UAE headquartered Related, where the funds will be used to launch AI and Blockchain solutions and expand into the United Kingdom.

As per the press release, the investment underscores Equivator’s commitment to nurturing groundbreaking ventures within high-growth sectors. It is aimed at accelerating Related’s expansion in the Kingdom, boosting innovation, and fast-tracking the launch of transformative solutions in AI, blockchain, and customer experience.

It also strengthens Related’s position as the company of choice for loyalty and rewards in Saudi Arabia and the broader Middle East and North Africa (MENA) region. The alliance aligns with Saudi Arabia’s wider economic diversification goals and its rapid digital transformation under Vision 2030.

Related currently services more than 30 million users across the GCC and Levant, powering loyalty programs for leading institutions in telecommunications, banking, retail, utilities, and entertainment.

“We are thrilled to welcome Equivator as a strategic partner on our journey to redefine loyalty and engagement in the region,” said Rabih Farhat, CEO of Related. “This partnership is more than a transaction; it’s a transformation, a joint mission to reshape the future of fintech-powered loyalty solutions in line with the Kingdom’s innovation agenda.”

The investment builds upon Equivator’s earlier involvement in the loyalty-focused B2C space through its prior investment in Uplines. In a decisive move, Related has acquired Uplines in full, integrating it into its broader strategic framework and setting the stage for a bold relaunch. As part of the development strategy, Related will introduce a range of new products and offerings, from Advanced AI tools to blockchain-enabled rewards platforms, gamification features and payments. These will enhance B2B and B2C experiences while unlocking value for brands and consumers alike.

“This is more than an investment. it’s a strategic deal to build a regional champion in loyalty and digital payments,” stated Enes Şehzade, CEO at Equivator. “Together, we aim to power a new era of data-driven customer engagement and reward invention.”

Equivator will support Related’s market entry into Europe and beyond while helping establish initiatives such as the “Related Loyalty & Fintech Authority”, a new regional knowledge and policy forum further solidifying Related’s leadership.

VARA Dubai launches Decentralized exchange pilot

VARA Dubai launches Decentralized exchange pilot

Dubai’s Virtual Asset Regulatory Authority is piloting a decentralized exchange project, (DEX), the first of its kind in the MENA region. DEX is a peer to peer marketplace where users can trade cryptocurrencies directly with each other without the need for a central intermediary, differing from centralized crypto exchanges.

According to Mathew White CEO of VARA in a LinkedIn post, ” The conversation around decentralised finance (DeFi) has evolved. Not long ago, the question was “Will it survive?”. Now it’s “How fast can we integrate it? At the Virtual Assets Regulatory Authority [VARA], we don’t see DeFi as a threat to traditional finance (TradFi), but a high-efficiency tool for accelerating its evolution.”

He notes that their DEX pilot, the first in MENA reflects Dubai’s ambition to be the first jurisdiction in the region with DEX regulations. He also notes that it will offer regulatory certainty.

He states, “We’re not afraid to move first, as long as we move responsibly. Dubai’s innovation appetite, combined with VARA’s balanced oversight, is creating one of the world’s most supportive environments for DeFi to thrive.”

The building blocks which are smart contract, DAOs, oracles, dApps, and wallet are not fringe technologies but offer a compelling solution to one of finance’s oldest problems, siloed capital and slow moving liquidity.

He notes that DeFi shrinks clearing cycles, and counterparty risk is replaced with transparent auditable code.

Over $110 billion are currently locked in DeFi protocols, access becomes open and participation global, by default.

He refers to ARK Invest’s Cathie Wood rwho ecently called it a “financial services revolution.” She highlights DeFi’s growing share of futures and spot trading volumes, and an even more striking metric – lending. With DeFi’s share jumping from 15% to over 60%, the implications are profound.

But DeFi has also had its risk with $787 million in losses in 2023, and $474 million in 2024.

This is why according to White, ” At VARA, we’ve built a risk-based licensing regime tailored for this next phase of finance. This includes outcome-based rules and principles, mandatory on-chain audit reports before full protocol licensing, and real-time monitoring of APIs to detect market stress long before retail users feel it. This isn’t regulation for regulation’s sake. It’s about building the guardrails that make innovation sustainable. And in Dubai, we’re not just writing policy – we’re piloting the future.”

Recently Lorenzo Valiente. Director of Research at Ark Invest, highlighted “strong, secular trends” in DeFi. Valente pointed out that despite market volatility and macro uncertainty, DeFi’s share in futures trading has grown from 1.6% to 7% since the fourth quarter of 2022, while its share in spot trading has surged from 7% to 20%.

DeFi’s share in lending also jumped, widening from 15% to over 60%. “DeFi isn’t just surviving — it’s scaling,” Valented said.

According to DeFiLlama, the decentralized cryptocurrency exchanges recorded a volume of $6.82 billion in the last 24 hours, with Uniswap UNI/USD and Raydium RAY/USD being the main drivers. The DEX-to-CEX dominance was over 25%, indicating that decentralized exchanges logged a quarter of the volume compared to centralized exchanges.

Earlier White noted on LinkedIn that the tokenization of real-world assets (RWAs) is no longer an experiment. He stated, “It’s happening right now.” He explained how VARA views tokenization as more than a blockchain use case but rather as a structural shift and the foundation for a new kind of financial system. He explains, ” Everything from real estate and art to commodities and IP can be digitally represented, owned and exchanged in real time.”

So VARA is working on two innovative implementations within the blockchain and crypto ecosystem in 2025, and maybe more to come.

Dubai’s VARA and Blockchain Ireland partner to advance virtual asset startups

Dubai’s VARA and Blockchain Ireland partner to advance virtual asset startups

Blockchain Ireland recently signed an MoU with Dubai’s Virtual Assets Regulatory Authority [VARA] to partner towards deepening collaboration between two forward looking jurisdictions committed to the responsible advancement of virtual assets, Web3, and emerging digital economies.

As per the LinkedIn post, the agreement aims to foster bilateral knowledge exchange and regulatory dialogue, support start-ups and scale-ups looking to expand across the EU and the Middle East, build bridges between talent, capital, and innovation ecosystems and promote policy leadership and cross-border cooperation in the virtual asset sector.

Over the past decade, economic ties between the two countries have strengthened significantly. Irish exports to the UAE have grown by 127%, with imports increasing by 3,094%. The total bilateral trade is now value at more than €2.25 billion annually.

Blockchain Ireland noted on LinkedIn, “As the global regulatory landscape evolves, we believe strategic partnerships like this are vital to shaping a safe, secure, and innovation-friendly future for the industry.”

UAE Zodia Custody, digital assets are intrinsic in UAE’s government strategy

UAE Zodia Custody, digital assets are intrinsic in UAE’s government strategy

Dominic Longman is Managing Director of Middle East and Africa at Zodia Custody noted in a monthly interview on their website, that the UAE mood for digital assets is incredibly positive and that digital assets are now intrinsic in the government’s DNA.

He notes that the UAE has ignored the hype cycle nodes and devised “a well thought-through strategy and a considered long-term path. This process has been in motion since 2015 and it’s not just about blockchain or digital assets as technologies, it’s about attracting firms that build jobs, industries and long-term value.”

He believes that because of UAE’s government structure an the regulators ADGM and VARA, the UAE can think strategically in 10–15-year arcs not in four-year election cycles.

He adds that big names like Binance and Bybit have set up regional bases, with others including Galaxy Digital making plans to move here. Prime brokerage firms, auditors, fund administrators and infrastructure providers are also following. When I arrived in 2015 there wasn’t yet a local auditor with digital assets capabilities; today, there are multiple global and regional firms that provide that expertise. This ecosystem maturity means that institutions aren’t just bringing capital – they’re enabling the full operational chain: compliance, auditing, legal, infrastructure and education.

When I speak with U.S. firms, they tell me: ‘We don’t know what the next administration will bring. But we know what the UAE’s 20-year plan looks like.’ That predictability is gold.

In terms of tokenization, Longman believes tokenizing real estate, infrastructure and bonds is one of the biggest topics. He stated, “This country is built on real estate, so that is important, but even more significant is building the next generation of tokenized financial instruments. Some very mature discussions are underway between firms, regulators, and infrastructure providers about how to tokenize everything from shopping malls to sovereign debt. Everyone’s past the hype. Now it’s about ownership, access, liquidity but with real controls in place.”

He believes the cornerstone of tokenization will be stablecoins as they are critical in these tokenization discussions. He explains, ” The region settles in dollars and the UAE Dirham is pegged to the US dollar so using USD stablecoins for trade, especially in logistics and energy, is a no-brainer. It’s faster, cheaper and removes friction. While the licensing of stablecoins ultimately sits with the UAE Central Bank, there is growing momentum across the ecosystem – including in ADGM and VARA – to enable innovation within this space. Notably, the Central Bank is now developing regulatory frameworks for AED-backed stablecoins, which could play an important role in enabling more efficient local settlement and expanding the scope of tokenized financial infrastructure within the region.”

As for the future Longman sees that tokenized securities on regulated exchanges will offer real time settlement, and 24/7 markets. He says this is beyond crypto ETFs, but about rebuilding the core of financial markets.

He says, “The UAE isn’t just aiming to be a digital asset friendly jurisdiction – it wants to be the center for tokenized finance. We’re also starting to see early signs of convergence between digital assets and AI – from the use of insight agents to develop entirely new financial products, to unlocking previously inaccessible liquidity pools. These technologies aren’t evolving in parallel anymore; they’re reinforcing one another. This is bigger than margin trading or digital asset custody. We’re talking about the future of capital markets.”