UAE’s Tungsten Obtains ADGM Licence To Store Digital Assets

The UAE has made a significant stride in the digital assets space with the launch of Tungsten, the first UAE-built and regulated custody platform designed to securely store digital assets for institutional investors. This development follows Tungsten's successful acquisition of a licence from the Financial Services Regulatory Authority (FSRA) to operate within the Abu Dhabi Global Market (ADGM). The platform's inception comes at a time when the UAE has seen over US$34.9 billion in digital assets transactions from July 2022 to July 2023, with institutional investors accounting for approximately 67% of these transactions.

Investors in digital assets face myriad risks, including operational challenges and the danger of uninsured asset loss, a concern highlighted by Hacken research which estimates that 70% of crypto wallets have security vulnerabilities. Tungsten aims to mitigate these risks with its state-of-the-art security systems and rigorous controls, aligning with the highest standards set by governments, institutions, and banks worldwide.

Arvind Ramamurthy, Chief of Market Development at ADGM, expressed his support for Tungsten, highlighting the need for regulatory controls and risk management services in the evolving digital asset space. He emphasized that Tungsten's offerings, combined with ADGM's dynamic ecosystem and progressive digital assets regulations, will enable secure investments and maintain market integrity.

Chris Desjardins, the Founder and Senior Executive Officer of Tungsten, underscored the transformative potential of digital assets and the UAE's leadership in establishing a trusted investment environment. Desjardins, who brings a wealth of experience from his previous venture, Big Index, and his role at Brane Inc., is committed to setting a new standard for digital asset custody through Tungsten.

Tungsten distinguishes itself by focusing exclusively on the custody of digital assets, independent from other services like crypto asset trading. This allows the platform to concentrate on safeguarding clients' assets through secure online and offline procedures, bank-grade physical vaults, enterprise-grade wallet management, and top-tier network hardware. Moreover, Tungsten offers robust governance and high insurance coverage to provide institutional investors with the utmost reassurance.

Looking ahead to 2024, Tungsten plans to expand its customer base, targeting regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs). The company also aims to invest in technology advancements and make strategic hires to enhance its world-class security infrastructure, ensuring it remains at the forefront of digital asset custody solutions.