UAE Welcomes Institutional Crypto: Zodia Custody Acquires Tungsten and Figment Expands
As the global crypto industry consolidates and institutional demand climbs, two major players, Zodia Custody and Figment, are doubling down on the Middle East, which once again, shows that the UAE is emerging as a vital hub for regulated digital asset infrastructure.
Zodia Custody, a digital asset custodian backed by Standard Chartered, Northern Trust, Emirates NBD, and other major institutions, has officially acquired Tungsten Custody Solutions, a UAE-based custodian regulated under the Abu Dhabi Global Market (ADGM). The deal, first announced in April, brings Zodia a licensed presence in a region seen as a key architect of future digital finance.
Tungsten’s licensing under ADGM’s Financial Services Regulatory Authority (FSRA), as well as its initial approval from Dubai’s Virtual Asset Regulatory Authority (VARA), gives Zodia immediate access to one of the world’s most progressive regulatory jurisdictions for digital assets. Zodia also plans to continue pursuing Tungsten’s full VARA license as it builds its offering across the region.
“Zodia Custody’s acquisition of Tungsten reflects our long-standing and ongoing commitment to the UAE,” said Dom Longman, Global Head of Markets at Zodia. “We’re deepening our presence in a market that is setting the global tone for crypto regulation and financial innovation.”
Figment Joins the Fray with Strategic Tungsten Partnership
Zodia isn’t the only institutional player moving in. Figment, a leading provider of staking infrastructure for proof-of-stake networks like Ethereum and Solana, has announced its expansion into the Middle East alongside a strategic partnership with Tungsten.
As part of the move, Figment appointed Christoph Richter as its first Head of Business Development for the region. The partnership will enable non-custodial staking services for institutional clients in the UAE, leveraging Tungsten’s regulatory standing and local network.
“Staking is increasingly being seen as the risk-free rate in proof-of-stake ecosystems,” said Richter. “With inflation-beating returns and growing institutional allocations to digital assets, the MENA region is ripe for compliant, yield-generating infrastructure.”
Richter, a seasoned financial executive with two decades of experience at JP Morgan, Barclays, and BNP Paribas, brings a strong network of relationships in Saudi Arabia and the UAE, having worked on public-private infrastructure partnerships across the region.
UAE Emerges as an Institutional Anchor in Crypto
The timing of these moves is no coincidence. The UAE’s dual-regulatory approach, anchored by ADGM in Abu Dhabi and VARA in Dubai, has made the country as a jurisdiction of choice for institutional crypto players seeking clarity and credibility.
Zodia’s acquisition of Tungsten adds custody credibility at a time when regulatory scrutiny on custodians is rising globally, while Figment’s entry marks the first serious effort to localize staking services in a compliant, institutional-grade manner.
The two announcements also highlight a broader theme: the convergence of custody, staking, and compliance as core pillars of the institutional digital asset infrastructure stack.
With a maturing policy environment and increasing capital allocation from Gulf-based investors, there is no doubt that the UAE is quickly becoming a proving ground for global players aiming to blend innovation with regulatory accountability.
