Digital asset management company XBTO has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) to begin operations in the United Arab Emirates. The company, which provides digital asset services to institutional investors outside the United States, will continue to operate its existing offices in Bermuda, London and Paris, while leveraging its presence in Abu Dhabi to better serve clients in the Middle East, according to a company statement.
This development comes as the Middle East establishes itself as a major destination for cryptocurrency companies, positioning the region as a leading global hub for capital flowing into both traditional and digital assets.

“Receiving preliminary approval is a major step forward for XBTO in establishing a strong presence in the rapidly growing Gulf region,” said Philip Bekhzi, Founder and CEO of XBTO. He explained that the UAE was chosen because of its potential to become a global hub for digital asset trading. “I am excited to see this area of ​​business develop in the coming months and years,” he added.

The preliminary approval represents a major milestone in XBTO’s ongoing journey to becoming a regulated digital asset company in multiple jurisdictions. XBTO is currently regulated by the Bermuda Monetary Authority (BMA) and is in the process of applying for licenses in both the UK and France.
In addition, Abu Dhabi Global Market has emerged as the fastest growing financial centre in the region, with assets under management (AUM) increasing by 211% in Q1 2024 compared to Q1 2023. Abu Dhabi is also rapidly attracting its target clients, including family offices, large traditional and crypto hedge funds, high-net-worth individuals, blockchain protocols, venture capital funds, and brokerage firms, driven by prominent financial institutions that have launched operations there in the past year.

Earlier this year, XBTO was selected by Hub71’s Digital Asset Program, highlighting the company’s commitment to building a successful digital asset ecosystem outside of Abu Dhabi.
Karl Naim, Global Head of Business Development and General Manager of XBTO Middle East, highlighted the exciting growth in the region, saying: “This is an exciting time for digital assets, the UAE and its neighbours. XBTO works with organisations across the region and we look forward to working alongside regulators, policymakers and institutions to help build a thriving and leading digital asset ecosystem out of Abu Dhabi.”

XBTO will maintain its global headquarters in Bermuda and European offices in Paris and London, while leveraging its presence in Abu Dhabi to better serve the Middle East. The company is well positioned for expansion, with its actively managed strategies seeing assets under management grow 11x by 2024. In line with its long-term commitment to the UAE, and subject to regulatory approval of its financial services license, XBTO plans to continue investing in its presence in the region.