Animoca Paves Institutional Pathways in Web3 with ADGM Approval

Animoca Brands, a leading Web3 investment and infrastructure firm, has secured in-principle approval from Abu Dhabi's Financial Services Regulatory Authority to operate as a regulated fund manager within the Abu Dhabi Global Market (ADGM). This development marks a significant step in the company's strategic expansion across the Middle East, a region it views as pivotal for institutional participation in Web3 and digital assets. The approval, while conditional, aligns with Animoca's broader goal to establish compliant investment channels for global institutions, reinforcing its position as one of the industry's largest backers with a portfolio of over 600 Web3 investments.

The in-principle approval allows Animoca to proceed toward managing collective investment funds from ADGM, subject to meeting capital, compliance, and operational requirements for final licensing according to the announcement. Omar Elassar, Animoca's managing director for the Middle East, emphasized the UAE's growing prominence as a Web3 hub, stating the approval supports the company's regional strategy to build "regulated, institutional pathways for participation" while maintaining partnerships with founders and enterprises across the ecosystem. The firm already maintains a presence in Dubai and has previously signaled its intent to list on Nasdaq, underscoring its ambitions to scale institutional-grade operations.

ADGM's regulatory framework has increasingly attracted blockchain and digital asset firms seeking a rules-based environment. The authority's endorsement of Animoca complements its recent expansion efforts, including attracting global investment firms like KKR, which recently opened an office in ADGM. KKR's move, part of its broader Middle East strategy, highlights the emirate's appeal as a financial bridge between East and West, with ADGM officials describing it as a "leading global financial centre". For Animoca, the regulatory backing strengthens its ability to capitalize on the UAE's stable economic foundation and strategic location, positioning ADGM as a key node in its global infrastructure.

The conditional nature of the approval means Animoca must still satisfy operational and capital requirements before final licensing. However, the in-principle step reflects ADGM's commitment to fostering innovation while maintaining compliance standards. Animoca's expansion into regulated fund management aligns with broader trends of institutional players entering Web3, a sector long dominated by retail investors. By leveraging ADGM's framework, the firm aims to streamline capital formation and fund structures, addressing a critical gap in the Web3 ecosystem.