Abu Dhabi Gains Web3 Institutional Heft via Animoca's Regulated Approval

Animoca Brands, a leading Web3 investment firm, has received in-principle approval from Abu Dhabi's Financial Services Regulatory Authority (FSRA) to operate as a regulated fund manager within the Abu Dhabi Global Market (ADGM). This development marks a significant step in the company's strategy to expand its institutional presence in the Middle East and establish compliant investment channels for Web3 assets. The approval aligns with Abu Dhabi's growing reputation as a hub for blockchain and digital asset innovation, with Animoca now poised to manage collective investment funds under a regulated framework.

The firm, which already maintains a presence in Dubai, has positioned the UAE as a cornerstone of its regional expansion. Animoca's managing director for the Middle East, Omar Elassar, emphasized that the approval supports efforts to "build regulated, institutional pathways for participation" in Web3, a sector the company has long championed according to the report. The move also complements Animoca's broader ambitions, including its recent announcement of plans to pursue a public listing on Nasdaq.

Animoca Brands manages a portfolio of over 600 Web3 investments, spanning gaming, infrastructure, digital property rights and tokenized platforms. This positions the firm as one of the industry's most active backers, with a focus on fostering institutional-grade opportunities in a rapidly evolving ecosystem. The ADGM approval allows Animoca to begin finalizing operational, compliance, and capital requirements to secure full authorization, which would enable it to offer structured fund products to global investors.

Animoca's entry into the ADGM ecosystem underscores the region's appeal to Web3 players aiming to bridge traditional finance and decentralized technologies.

The timing of the approval reflects broader momentum in Abu Dhabi's financial sector. ADGM has emerged as a key destination for blockchain firms seeking regulatory clarity, with entities like KKR recently establishing offices in the emirate.

Animoca's regulated approach aligns with this trend, offering a framework for traditional investors to engage with Web3 assets while mitigating risks associated with unregulated markets. According to recent data, with over 95% of Bitcoin ETF assets held by investors aged 55 and older, institutional stability has become a critical factor in crypto markets.

Final approval for Animoca's fund management license remains conditional on meeting operational benchmarks. However, the in-principle nod signals strong regulatory confidence in the firm's capabilities and its commitment to compliance. As Abu Dhabi continues to attract global capital, Animoca's expansion could further cement the UAE's status as a linchpin for Web3 innovation and institutional adoption.