10 September 2024, Bermuda – XBTO, a leading global institutional digital assets company, has announced that it has received In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate in the United Arab Emirates (UAE).
This approval underscores the growing importance of the Middle East as a strategic hub for digital asset businesses. With increasing capital flows into both traditional and digital assets, the region has emerged as a dominant global financial center.
Philippe Bekhazi, Founder & CEO of XBTO, highlighted the significance of this milestone: “Receiving In-Principle Approval is a major step forward for XBTO in establishing a strong presence in the rapidly expanding Gulf region. We believe the UAE has the potential to become the global hub for digital asset businesses, so it is crucial for XBTO, as one of the world’s leading digital assets companies, to have a foothold here. I’m excited to see this area of the business develop in the coming months and years.”
The IPA marks a significant chapter in XBTO’s mission to become a fully regulated digital assets business across multiple jurisdictions. The company has been regulated by the Bermuda Monetary Authority (BMA) since 2019 and is actively applying for licenses in the UK and France.
ADGM was chosen as XBTO’s base for regional expansion due to its pioneering regulatory framework, designed to govern exchanges, custodians, brokers, and intermediaries involved in virtual asset activities. The ADGM financial center is currently the fastest-growing in the region, with a 211% increase in assets under management (AUM) in Q1 2024 compared to Q1 2023.
Bekhazi emphasized the importance of this environment: “With major financial institutions launching in Abu Dhabi last year, the city is quickly attracting key clients such as family offices, traditional and crypto-native hedge funds, high-net-worth individuals, blockchain protocols, VC funds, and brokerages.”
Earlier this year, XBTO was selected by the Hub71 Digital Asset program, a reflection of the company’s plans to contribute to Abu Dhabi’s growing digital asset ecosystem.
Karl Naïm, Global Head of Business Development & General Manager of XBTO Middle East, added: “This is an exciting time for digital assets and the UAE. There is strong interest in the sector’s growth across the region, and XBTO is working with various organizations. We look forward to collaborating closely with regulators, decision-makers, and institutions to help build a thriving and leading digital assets ecosystem from Abu Dhabi.”
While the company’s headquarters will remain in Bermuda, XBTO will leverage its Abu Dhabi base to serve the Middle Eastern market. The company has experienced significant growth in 2024, with its actively managed strategies’ AUM increasing 11-fold. Looking ahead, and subject to receiving a full Financial Services Permission (FSP) from the FSRA, XBTO plans to make additional investments to enhance its presence in the UAE.
About XBTO
Founded in 2015, XBTO is a full-service digital asset platform providing institutions, family offices, and high-net-worth individuals with best-in-class investment solutions. The company enables clients to confidently navigate the digital asset market. XBTO is licensed by the Bermuda Monetary Authority under the Digital Asset Business Act and has a presence in Bermuda, Miami, New York, London, Paris, and Abu Dhabi.
For more information, visit www.xbto.com.
