Tungsten Secures FSRA License, Set to Enhance UAE's $23B Digital Assets Custody Sector

UAE-based Tungsten has officially launched after securing a license from the Financial Services Regulatory Authority (FSRA) to operate within the Abu Dhabi Global Market (ADGM).

Representing a significant milestone, Tungsten stands out as the first UAE-built and regulated custody platform expressly designed to securely store digital assets for institutional investors.

The launch comes amid a remarkable interest in digital assets within the UAE, with figures from Chainalysis indicating that over the 12 months leading to July 2023, the value of digital assets received by the UAE surpassed a staggering $34.9 billion.

Notably, institutional investors accounted for approximately 67% of these transactions, underscoring a substantial opportunity for specialized digital asset custody services.

Investors navigating the realm of digital assets often encounter operational risks associated with managing the intricacies in-house, coupled with the potential for uninsured asset loss. Research from Hacken suggests that a concerning 70% of crypto wallets harbor security vulnerabilities.

Moreover, outsourcing custody to exchanges and over-the-counter brokers introduces additional counterparty risks.

Tungsten aims to address these challenges head-on by leveraging state-of-the-art systems and implementing rigorous controls that adhere to the highest standards set by governments, institutions, banks, and federal reserves. According to the company, Tungsten seeks to instill peace of mind among institutional investors venturing into digital asset investments, including cryptocurrencies.

Arvind Ramamurthy, Chief of Market Development at ADGM, extended congratulations to Tungsten and highlighted the critical role of regulatory controls in safeguarding investors while also emphasizing the need for robust risk management services. He expressed confidence in Tungsten's ability to provide secure custody solutions within ADGM's progressive regulatory environment.

Chris Desjardins, Tungsten's Founder and Senior Executive Officer, also highlighted the unprecedented opportunities presented by digital assets and emphasized the UAE's pivotal role in crafting a trusted investment ecosystem.

It is worth noting that Tungsten operates independently and focuses solely on safeguarding clients' digital assets, employing a combination of secure online and offline procedures, including bank-grade physical vaults and enterprise-grade wallet management. Moreover, clients benefit from robust governance structures and high insurance coverage, providing utmost reassurance to institutional investors, according to the company.

Looking ahead, Tungsten plans to scale its customer base throughout 2024, catering to the increasing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs).

The company will also prioritize strategic hires across key functions and invest in technology to further enhance its world-class security standards.