Zodia Custody, a global provider of institutional-grade digital asset custody solutions, has officially acquired UAE-based Tungsten, marking a major leap in its MENA expansion strategy.
This move gives Zodia direct access to Tungsten’s Financial Services Regulatory Authority (FSRA) license within Abu Dhabi Global Market (ADGM), one of the most prominent financial centers in the region.
The acquisition strengthens Zodia’s ability to deliver secure, regulated digital asset services across the UAE and beyond.
“This is a pivotal milestone,” Zodia executives noted, “positioning us to support regional and global investors with trusted, compliant infrastructure.”
Strengthening Digital Asset Infrastructure
Zodia, backed by Standard Chartered Bank and Northern Trust, is known for its robust, regulation-first approach to digital asset custody. This acquisition enables the company to accelerate its service delivery to institutional investors and financial entities seeking regulated exposure to crypto and blockchain-based assets.
Tungsten, though a relatively young player, quickly built credibility in the UAE for offering reliable, institutional-grade custody solutions. With growing regional interest in digital assets, this entry is well-timed to serve a maturing market hungry for secure digital infrastructure.
The company also reaffirmed its plans to secure a Virtual Asset Service Provider (VASP) license from **Dubai’s Virtual Assets Regulatory Authority (VARA), further extending its operational reach within the UAE.
As part of the deal, Further Ventures, a UAE-based VC firm instrumental in launching Tungsten, joins Zodia Custody’s shareholder base. This partnership aligns with the firm’s broader strategy to scale in markets with advanced digital infrastructure and forward-looking regulations.
This acquisition signals Zodia’s long-term bet on MENA as a hub for digital finance innovation, and it mirrors growing momentum among regulators and investors to build a solid, trustworthy digital asset ecosystem.
How Zodia will Impact MENA Tech Startups
Zodia’s entry into the MENA market, particularly through an acquisition rooted in ADGM, has several implications for local startups:
- Improved Infrastructure for Fintech Builders: With institutional-grade custody now available locally, fintech startups working in crypto, tokenization, or blockchain can build on a secure, licensed platform—reducing compliance and trust barriers.
- Increased Investor Confidence: Institutional investors will be more willing to back digital asset startups with the assurance of regulated custody solutions in place.
- Faster Regulatory Clarity: As major players like Zodia work closely with UAE regulators (FSRA, VARA), the whole ecosystem benefits from clearer frameworks and faster licensing pathways.
- Stronger Global Ties: Startups in MENA can now more easily align with international custody standards, helping them scale beyond the region and access cross-border capital markets.
Zodia’s expansion is not just a corporate move, it’s a signal that MENA is ready for the next-level digital asset innovation, with global infrastructure players now setting up shop to support that growth.
