News DeskAbu Dhabi, UAE – Tungsten, a UAE-based company, has launched as the first locally built and regulated custody platform for digital assets. The platform is designed to securely store digital assets for institutional investors. This launch comes after Tungsten successfully obtained a license from the Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM).
The launch of Tungsten is timely, considering the significant growth of digital assets in the UAE. Over the 12 months leading up to July 2023, the UAE received over US$34.9 billion in digital assets, with approximately 67% (around US$23 billion) of transactions conducted by institutional investors.
Investors often face operational risks when managing digital assets in-house due to their complexity and the potential for uninsured asset loss. Research by Hacken estimates that 70% of crypto wallets have security gaps. Tungsten aims to mitigate these risks by providing state-of-the-art systems and rigorous controls that align with the stringent standards set by governments, institutions, banks, and federal reserves.
Arvind Ramamurthy, Chief of Market Development at ADGM, welcomed Tungsten to Abu Dhabi’s international financial centre. He highlighted the need for regulatory controls and risk management services in the ever-evolving digital asset space. Tungsten’s offerings, combined with ADGM’s vibrant ecosystem and progressive regulations for digital assets, aim to empower investors and maintain market integrity.
Chris Desjardins, Tungsten’s Founder and Senior Executive Officer, emphasized the importance of establishing a trusted investment environment for realizing the potential of digital assets. He expressed pride in Tungsten being developed and regulated within the UAE, positioning the country as a pioneering force in the finance sector of tomorrow.
Tungsten provides secure, regulated custody, allowing clients to confidently invest in digital assets. The platform ensures secure online and offline procedures, including bank-grade physical vaults, enterprise-grade wallet management, and world-class network hardware. Clients also benefit from strong governance and high insurance coverage.
Throughout 2024, Tungsten plans to scale customer acquisition to cater to the growing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs). The team will also make strategic hires across key functions and invest in technology to fortify its world-class security.
