The Abu Dhabi Securities Exchange to list first ever MENA blockchain based digital bond

The Abu Dhabi Securities Exchange to list first ever MENA blockchain based digital bond

Abu Dhabi Securities Exchange (ADX), the largest exchange in the UAE and second largest exchange in the Middle East North Africa (MENA), has started the pricing stage as an initial step towards listing the first ever DLT ( Distributed Ledger Technology)/ Blockchain digital bond in the MENA region.

As per the announcement the DLT digital bond will be issued by First Abu Dhabi Bank (FAB) using HSBC Orion, digital asset platform. The listing on ADX is a collaboration of all three entities powered by HSBC Orion which is operated by the Central Moneymarkets Unit (CMU) in Hong Kong, and structured with support from leading international law firms, reflecting the high standard of governance.

HSBC Orion has led the way in the digitalisation of the capital market infrastructure. It facilitated the launch of the European Investment Bank’s first-ever digital bond in pound sterling2, and the world’s first multi-currency digital bond offering as well as the largest digital bond issuance for the HKSAR Government. HSBC is also the first bank in the world to offer tokenized ownership in physical gold.

Global investors can access the digital bond through accounts held with CMU, Euroclear and Clearstream, onboarding onto HSBC Orion as direct participant, or via their existing custodian who can participate through one of the above options.

Introducing the digital bond into ADX’s growing list of financial products supports its broader ambition to offer innovative financial instruments and signifies the Exchange’s pioneering role in introducing tokenized finance. Digital bonds, fixed-income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security and enhanced transparency for institutional investors.

HSBC acted as the sole global coordinator, lead manager and bookrunner on the transaction, and played a central role in bringing the end-to-end blockchain-based issuance to the MENA region.

Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, said, “The successful issuance of MENA’s first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation. ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.”

He added that this initiative not only expands access to institutional grade digital instruments but lays the foundation for broader class of tokenized assets which include green bonds, sukuk, real estate linked products and more. He noted, ” It reinforces Abu Dhabi’s position as a leading global financial centre. It aligns with the UAE’s national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth.”

Lars Kramer, Group Chief Financial Officer at First Abu Dhabi Bank (FAB), also explained, “This milestone marks a significant advancement in our innovation journey, establishing FAB as the issuer for the first blockchain-based digital bond in the MENA region. Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE’s progressive regulatory framework. We are supporting investors navigate the global digital assets landscape. This bond issuance accelerates the development of a robust digital capital markets ecosystem in the UAE.”

Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, added that the successful launch of MENA’s first digital bond on ADX using HSBC Orion shows how they are transforming the promise of tokenization into reality within the MENA region. He explains, “This is a significant milestone towards a future where digital assets become a mainstream part of the Middle East’s financial landscape.”

This comes after the Securities and Commodities Authority in UAE issued its security and commodity token regulation.

Crypto mining platform Hut 8 to enter the UAE

Crypto mining platform Hut 8 to enter the UAE

Hut 8 (NASDAQ:HUT) an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive use cases such as Bitcoin mining and high-performance computing, has registered to open an office in Dubai UAE. The company also disclosed it had raised $220 million to purchase Bitcoin and mining infrastructure and has announced that by March 2025 it has approximately 10.8 GW of development capacity.

The announcement was published in an article in Bloomberg. CEO of Hut 8, Asher Genoot noted that the new Dubai office would enhance the precision and efficiency of Hut 8’s capital strategy.

Hut 8 confirmed to Bloomberg that the Dubai office would house a new team focused on trading and digital asset strategies. The company already operates facilities in Texas, New York, and Alberta, Canada.

Hut 8 joins UAE based Phoenix Group, as well as Marathon Digital Holding who also have operations in the UAE. The UAE has been building its data center capacities as it seeks to lead in both AI and digital asset infrastructure.

In March 2025, Hut 8 announced the launch of American Bitcoin Corp. (“American Bitcoin”), a majority-owned subsidiary of Hut 8 focused exclusively on industrial-scale Bitcoin mining and strategic Bitcoin reserve development. The launch of American Bitcoin follows the strategic contribution of substantially all of Hut 8’s ASIC miners to and in exchange for a majority interest in American Data Centers, Inc., a company formed by a group of investors including Eric Trump and Donald Trump Jr. In connection with the transaction, American Data Centers, Inc. was subsequently renamed and relaunched as American Bitcoin.

However a Hut 8 spokesperson told Bloomberg that the Dubai office is not related to its relationship with American Bitcoin.

Other countries such as Oman have also invested heavily in powering datacenters for Bitcoin mining and other applications.

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.