The UAE’s Digital Asset Evolution: A Decade-Long ‘Overnight Success’

Dominic Longman is Managing Director of Middle East and Africa at Zodia Custody and has been a prominent voice in digital assets for over a decade. In this interview, focused on the UAE’s rise as a leading global destination for cryptoassets and blockchain innovation, he outlines the country’s long-term strategy, the maturing ecosystem, and why institutions – from startups to Wall Street heavyweights – are placing significant bets on the UAE.

Dom, how would you describe the current sentiment around digital assets in the UAE and, in particular, how it has evolved over the past year?

The mood is incredibly positive. Digital assets are intrinsic now in the government’s DNA. While media headlines have been driven by hype cycles, regulatory panics and market volatility, the UAE has ignored the noise 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.

The UAE is often cited as a global leader in digital asset regulation. What factors do you think have helped it achieve that reputation?

The UAE is a classic example of an overnight success that’s actually been a decade in the making. The regulatory groundwork from Abu Dhabi Global Market (ADGM) and the Virtual Assets Regulatory Authority (VARA) has been in planning since at least 2016–17 and, because of the government’s structure, they can think strategically in 10–15-year arcs not in four-year election cycles.

From your perspective, how are institutional attitudes towards digital assets shifting in the region?

Early on, UAE’s digital asset scene was dominated by crypto-native players like Binance and Bybit but that has now changed dramatically. Now, we’ve got Brevan Howard,  BlackRock, Fidelity, Marshall Wace, and others here – because they see this as a place they need to be for all asset classes across TradFi and DeFi. The UAE has moved from early adopter to global heavyweight status. 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.

For global firms considering the UAE, what are some of the common misconceptions you encounter about operating in the region?

People still have certain preconceptions about the UAE, but once you’re here, you realise how outdated those views are. Emiratis comprise only around 15% of the population and we have a young, diverse workforce that is focused on growth, education and collaboration. This is a 53-year-old country that’s far more interested in partnerships than protectionism. They work collaboratively with other regulators such as the Monetary Authority of Singapore, the Hong Kong Monetary Authority and Australia’s Securities and Investment Commission to share information and best practices, particularly in the areas of regulation and improving the financial infrastructure for digital assets. Digital assets are not seen as a zero-sum game where only one jurisdiction will benefit. It’s about building co-operation and collaboration in other markets as well.

Beyond concern over stereotypes, the UAE also offers something institutions crave: regulatory stability. 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.

Tokenisation of real-world assets is gaining global momentum but how is this trend playing out specifically in the UAE market – and how is the increasing popularity of stablecoins feeding into this trend?

While interest in investing in and trading major cryptocurrencies like Bitcoin and Ethereum remains important, a lot of the real innovation is happening elsewhere. Tokenising real estate, infrastructure and bonds is one of the biggest topics. This country is built on real estate, so that is important, but even more significant is building the next generation of tokenised financial instruments. Some very mature discussions are underway between firms, regulators, and infrastructure providers about how to tokenise 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.

Stablecoins are absolutely critical to this discussion. 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 tokenised financial infrastructure within the region.

How does the level of institutional engagement you’re seeing in the UAE compare with other major financial centres?

UAE is becoming a magnet for talent and innovation. You’re seeing people come from traditional finance, who then made the leap into digital assets and are now relocating here. That’s a powerful talent cycle. The UAE offers a chance to be part of something being built from the ground up. Everyone who moves here goes through change – new job, new country, new climate, adapting to a different type of family life – that creates a strong sense of community which is where the really interesting ideas emerge. It’s not just about capital, it’s about combining brainpower, the right market participants and the ability to build sustainable business ideas over the longer-term. Not everyone will win, of course, but the talent density is incredible.

Looking over the next 12–18 months, what are the most important developments to watch?

Real-time settlement, 24/7 markets, and tokenised securities listed on regulated exchanges are all key elements. This is moving far beyond crypto ETFs. It’s about rebuilding the core of financial markets. The UAE isn’t just aiming to be a digital asset friendly jurisdiction – it wants to be the centre for tokenised 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. The UAE is not a trend follower, it’s a proactive architect of the digital future. With regulatory clarity, deep capital, a fast-growing talent pool and cross-sector collaboration, the Emirates really are setting the bar high for digital asset innovation. It’s not about attracting one firm or another – it’s about building the whole ecosystem that follows.

For institutions wondering where to place their next digital asset bet, the message is clear: the UAE is not just open for business – it’s rapidly building the future.