Crypto elites gather in Abu Dhabi, calling UAE the "new Wall Street of crypto"
TechFlow Selected TechFlow Selected
Crypto elites gather in Abu Dhabi, calling UAE the "new Wall Street of crypto"
Holding together in a bear market to embrace deep-pocketed backers!
Navigating Web3 tides with focused insightsBy: Zhao Ying
Source: Wall Street Horizon
Crypto industry heavyweights have gathered in Abu Dhabi, urgently seeking capital injections to revive a slumping market. As Bitcoin lost momentum since October and the sector faced an unexpected winter, key figures ranging from MicroStrategy founder Michael Saylor to Binance CEO Changpeng Zhao have descended on the UAE capital, hoping to secure funding from deep-pocketed local investors.
According to The Wall Street Journal on Sunday, during multiple meetings last week, crypto executives shuttled between venues—from the Bitcoin Middle East Conference to exclusive "whale-only" beach club dinners and champagne parties aboard superyachts—actively seeking contact with representatives of UAE sovereign wealth funds. It was reported that representatives managing $330 billion in assets under the UAE sovereign fund were present at these events.
The UAE’s interest in cryptocurrency continues to grow. Last week, Binance received full approval from Abu Dhabi’s financial regulator to operate its global trading platform from the region. A division of sovereign wealth fund Mubadala disclosed in November that it had tripled its Bitcoin investment, establishing a position worth approximately $518 million, while holding an additional $567 million in Bitcoin via ETFs.
Venture firm RockawayX referred to the UAE as the “new Wall Street of digital finance” in a presentation, shortly after announcing it would be acquired by a company backed by Abu Dhabi investors. However, industry insiders caution that securing UAE funding typically requires years of relationship-building and commitments to local operations—not simply “parachuting in, taking money, and leaving.”
Industry Giants Bet on Middle Eastern Capital
Facing market downturns, crypto leaders are pinning hopes on UAE investors. At the Bitcoin Middle East Conference, MicroStrategy founder Michael Saylor said he has been pitching plans to accumulate more digital currency through various financial instruments to “hundreds of investors” across the Gulf region—including sovereign wealth funds. The company’s stock has fallen over half since mid-year.
Saylor’s presentation depicted MicroStrategy as a space rocket propelled by Bitcoin, aiming for a “$20 trillion vision.” Metaplanet, a Japanese hotel operator turned Bitcoin accumulator, had its president take the stage stating the company is seeking to raise funds through a new preferred stock program called “MARS,” as its share price has also sharply declined.
Other participants seeking opportunities include Dominari Holdings, the Trump family’s preferred investment bank, and Hanwha Investment & Securities, the investment arm of South Korea’s Hanwha Group, which stated plans to make Abu Dhabi a regional hub for entering the crypto products market.
Setbacks in U.S. Policy Drive Capital Outflow
The crypto market downturn caught the industry off guard. Many had expected Trump’s full support for the sector to drive accelerated adoption and unlimited gains. Yet while U.S. equities remain near all-time highs, Bitcoin lost momentum in October, and a series of market liquidations severely hit traders and exchanges.
Trump’s cryptocurrency legislative agenda has also stalled, with some Democratic lawmakers hitting the brakes on a new bill aimed at creating a regulatory framework for digital asset markets. This policy uncertainty has further pushed industry capital toward overseas opportunities.
In contrast, the UAE’s interest in cryptocurrency continues to rise. Earlier this year, a state-backed investment firm in the UAE purchased a $2 billion stake in Binance, providing critical financial backing to the world’s largest crypto exchange.
Abu Dhabi Builds Crypto Financial Hub
The UAE is systematically positioning itself as a global cryptocurrency center. The Abu Dhabi government is attracting crypto startups to set up operations in the city’s financial district by offering early-stage financing, free office space, and other incentives.
Kristiina Lumeste, founder of Abu Dhabi-based venture firm Klumi Ventures, said: “Liquidity, decision-makers, and infrastructure are all here.” The firm is currently raising a $100 million crypto-dedicated fund from local investors.
At the Abu Dhabi Finance Week conference, executives from U.S. blue-chip crypto firms Coinbase and Circle engaged with Wall Street figures—including Bridgewater Associates founder Ray Dalio and Blackstone CEO Steve Schwarzman—as well as representatives from traditional banking giants like UBS and HSBC. The Crown Prince of Abu Dhabi attended the opening ceremony, and senior executives from Mubadala and other sovereign wealth funds participated in the event.
Local Presence Key to Securing Investment
Despite abundant opportunities, securing UAE funding is not easy. Basil Al Askari, co-founder of MidChains, an Abu Dhabi-based crypto brokerage backed by Mubadala, noted that many foreign companies arriving for the first time hope to quickly close deals and return home.
He observed that some commit “rookie mistakes,” assuming he works for a major UAE investment institution simply because he appears Emirati and wears traditional robes. Al Askari emphasized that, with few exceptions, convincing sovereign wealth funds or large family offices to invest usually requires years of relationship-building and a demonstrated commitment to developing local business operations.
Samantha Bohbot, Chief Growth Officer at RockawayX, said: “They’re not looking for people who parachute in, take money, and leave. You need to have real skin in the game and stay committed.” The firm had already established its headquarters and a local crypto project incubation center in the UAE before announcing its acquisition by a company supported by Abu Dhabi investors.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
