Galaxy Spikes UAE Push as Digital-Asset Hub Gains Momentum

Galaxy Digital, a leading digital asset firm, announced a major expansion into the Middle East by establishing a new office and entity in Abu Dhabi under the Abu Dhabi Global Market (ADGM). The move is part of the company's strategy to tap into the growing financial hub and aligns with the UAE's progressive regulatory framework for digital assets. Founder and CEO Mike Novogratz emphasized the strategic importance of the region for the company's global growth according to recent reports.

The firm's new Abu Dhabi office is expected to enhance Galaxy's ability to serve sophisticated investors and strengthen its partnerships in the region. Galaxy reported a net income of $505 million in the third quarter of 2025, highlighting its strong financial performance and capacity for expansion. Managing Director Bouchra Darwazah noted that the Middle East has become a vital region for the firm's operations and client base according to industry analysis.

The UAE has become an attractive destination for crypto companies due to its regulatory clarity and supportive environment for digital asset innovation. ADGM has granted regulatory approvals to major players such as Binance, Tether, and Circle, promoting a secure and transparent ecosystem. This regulatory progress has positioned the UAE as a key player in the global crypto landscape, drawing in international firms seeking stability and growth opportunities.

Why the UAE Is a Strategic Expansion Target

The UAE's regulatory framework for digital assets is seen as a model for balancing innovation with oversight. Regulators in Dubai and Abu Dhabi have approved several high-profile crypto firms, including exchanges and stablecoin issuers, signaling a welcoming environment for the industry. ADGM's recent recognition of Tether's USDT as a fiat-referenced token and approval of Ripple's RLUSD further illustrate the region's commitment to fostering a robust digital asset ecosystem.

Abu Dhabi's strategic location and infrastructure make it an ideal hub for cross-border crypto activities. The city's government has implemented initiatives to reduce entry barriers for digital asset firms, including streamlined processes through the Dubai Virtual Assets Regulatory Authority (VARA). These policies are expected to drive significant growth in the regional digital asset sector, with some analysts predicting up to 20% annual growth through 2028.

What This Means for Investors

Galaxy's expansion into the UAE offers investors new opportunities in a market poised for continued growth. The firm's strong financial performance and strategic investments, such as its participation in the $1.65 billion Solana (SOL) treasury fund, demonstrate its capacity to deliver value in the digital asset space. The company's new office in Abu Dhabi is expected to support institutional-grade trading and infrastructure services, catering to the region's growing demand for digital assets.

The regulatory clarity in the UAE also benefits investors by reducing uncertainty and risk. With ADGM's robust compliance framework, investors can access a secure environment for trading and investing in digital assets. This aligns with the global trend of firms seeking jurisdictions with well-defined regulations to ensure long-term stability and growth.

How the Market Is Responding

The market has responded positively to Galaxy's expansion into the UAE, with the firm's stock and digital asset offerings gaining attention from institutional investors. The move has also reinforced the UAE's position as a leading destination for digital asset companies, attracting more firms to the region. Analysts note that the influx of global players into the UAE could accelerate the adoption of digital assets and drive further innovation.

The regulatory approvals granted to stablecoin issuers and exchanges in the UAE are also boosting market confidence. The recognition of USDT and USDC by ADGM enables seamless integration into payment systems and trading platforms, enhancing liquidity and adoption. This regulatory momentum is expected to attract more investors to the region, further solidifying the UAE's role in the global digital asset landscape.