The UAE’s Regulatory Edge Powers Web3’s Global Rise

Tokenisation is gaining traction as a transformative force in private wealth management, with regulatory advancements and institutional adoption propelling its development, particularly in the UAE. As digital assets move from speculative experimentation to scalable financial infrastructure, asset tokenisation is emerging as a key enabler of liquidity, fractional ownership, and cross-border investment opportunities. The UAE has positioned itself at the forefront of this evolution, with regulatory frameworks such as Abu Dhabi Global Market’s (ADGM) Virtual Assets Framework providing a structured environment for digital assets, including tokenised securities and stablecoins. This has attracted leading players like Binance, HashKey, and Hashgraph Ventures, which are leveraging the regulatory clarity to build compliant digital asset structures and institutional-grade operations [1].

The ADGM’s comprehensive regulatory ecosystem includes licensing for virtual asset trading venues, custody services, lending, and digital asset fund management, offering a single rulebook for digital asset operations. This has enabled firms like Hashgraph Ventures to secure fund manager licences for Web3-focused investments, while Zodia Markets and others have expanded their services into the Web3 space under ADGM’s Financial Services Regulatory Authority (FSRA). These developments underscore the UAE’s ambition to become a global hub for digital capital markets [1].

Institutional interest in tokenised assets is growing, with sovereign wealth funds and family offices integrating tokenisation into their portfolios. Regulatory support, such as the UAE Central Bank’s Payment Token Services Regulation, has enabled the launch of AED-backed and USD-backed stablecoins, supporting corporate treasury operations and facilitating cross-border trade. As of mid-2025, over 90 per cent of digital asset inflows in the Middle East and North Africa (MENA) region come from institutional and professional investors, reflecting a shift from retail speculation to structured, regulated participation [1].

The UAE’s dual approach, with Dubai focusing on commercial agility and Abu Dhabi on institutional infrastructure, has accelerated the adoption of tokenised assets. For example, RAKBANK became the first UAE bank to offer crypto trading to retail customers alongside traditional fiat, setting a precedent for broader adoption. With more than 1,500 Web3-related organisations operating in the UAE and the Mena blockchain market projected to reach $40 billion by 2027, the region is demonstrating significant momentum in leveraging tokenisation for financial innovation [1].

As stablecoins and tokenised real assets gain traction, they are expected to unlock new investment diversification strategies and financial products. The integration of tokenisation into structured finance, real estate, and credit markets is anticipated to expand significantly over the next three to five years. With major global custodians and infrastructure providers already establishing a presence in the UAE, the region is positioning itself as a preferred base for digital asset funds and capital market innovation in the Middle East and beyond [1].

Source: [1] UAE is rapidly emerging as a global powerhouse in the Web3 ecosystem (https://www.khaleejtimes.com/metaverse/web3/uae-is-rapidly-emerging-as-a-global-powerhouse-in-the-web3-ecosystem)