Abu Dhabi: Diving Deeper into Digital Assets

Abu Dhabi is rapidly establishing itself as one of the world’s most forward-thinking centres for digital finance. Supported by long-term economic vision, progressive regulation and a commitment to financial innovation, the Emirate has positioned itself as a leading jurisdiction for institutions exploring digital assets and tokenised finance.

In support of its broader strategy, Abu Dhabi established the Abu Dhabi Blockchain and Virtual Assets Committee (ADBVAC) to strengthen coordination across government entities and accelerate ecosystem development. Alongside this, Abu Dhabi Global Market (ADGM) – the Emirate’s international financial centre and financial free zone – was the first jurisdiction in the region to introduce a comprehensive regulatory framework for digital assets. Together, these initiatives demonstrate a sustained commitment to building a secure, well-supervised and innovation-friendly environment for market participants.

Regulatory Framework: Maturing and Sharpening

As a leading regulator in the sector, ADGM’s Financial Services Regulatory Authority (FSRA) continues to refine its digital asset regime in line with market and technology developments. Earlier this year, it introduced amendments to its virtual asset framework, including updates to the process for recognising virtual assets used in regulated activities, adjustments to capital and fee requirements, and greater clarity around firm responsibilities.

In October, the FSRA finalised its regulatory framework for fiat-referenced tokens and released a proposed framework for the regulated operation of staking – marking the next stage of regulatory evolution beyond trading and custody. The proposals emphasise governance, technology risk controls and transparency, reinforcing Abu Dhabi’s commitment to institutional-grade standards.

At a national level, the UAE Ministry of Finance announced that the updated Common Reporting Standard (CRS 2.0)will include digital assets and central bank digital currencies. Together with the Crypto Asset Reporting Framework (CARF), these updates enhance the UAE’s alignment with international tax transparency standards and strengthen cross-border regulatory cooperation.

Taken together, these developments show that Abu Dhabi not only has strong regulatory foundations, but is continuously maturing its frameworks – including areas such as staking, governance and virtual asset classifications – to support institutional adoption and the next phase of digital asset development.

Institutional Infrastructure and Licences

ADGM’s clear and innovation-focused regulatory perimeter continues to attract virtual asset service providers and institutional infrastructure players. Recent examples include UAE-based platform BurjX, which received an FSRA licence to operate a digital asset trading venue, and GFOX, which obtained in-principle approval to establish a digital asset derivatives exchange and clearing infrastructure.

Abu Dhabi is also participating in digital assets as an investor, not only as a facilitator of the ecosystem. Reports indicate that one of Abu Dhabi’s sovereign wealth funds, Mubadala Investment Co, has gained exposure to Bitcoin through BlackRock’s iShares Bitcoin Trust (IBIT), reflecting growing institutional interest in regulated digital asset investment vehicles.

What To Watch

This month, Abu Dhabi Finance Week (ADFW) brings together regional leaders and global institutions to discuss how emerging technologies – including AI, quantum computing and Web3 – will reshape global capital flows. Within digital assets, several themes are expected to dominate the conversation:

• Yield Generation
  • Yield generation remains a central priority for institutions. Simply holding cryptocurrencies is no longer sufficient; firms are increasingly exploring regulated mechanisms such as staking and institutional DeFi lending pools to optimise liquidity and returns. How ADGM finalises its staking framework – including which activities fall within regulatory scope – will influence product development and institutional appetite in the months ahead.
• Tokenisation of Real-World Assets (RWAs)
  • Based on ADGM’s work on digital securities and tokenised offerings, further payments and fintech tie-ins with tokenised assets, custody and settlement services look likely to be on the horizon.
• Interplay of Stablecoins and CBDCs
  • As the UAE advances its digital currency and broader digital asset strategy, the integration of stablecoins, CBDCs and tokenised deposits into the national payments infrastructure will be a key discussion point. With the UAE’s dollar peg and deepening global trade relationships, these developments will play a critical role in shaping cross-border settlement and financial connectivity.

As Abu Dhabi continues to bridge traditional finance with digital innovation, its regulatory clarity, commitment to responsible growth and expanding institutional infrastructure set it apart as a model for global markets. With policymakers, enterprises and innovators converging at Abu Dhabi Finance Week, the message is clear: the Emirate is rapidly becoming a global hub where traditional and digital finance converge to define the future of the industry.