Picture this: while most of the crypto world was busy watching U.S. election drama and ETF flows, something much quieter – but potentially far more important – was happening in the desert.
A few days ago, Galaxy Digital, the $6-billion-plus digital asset giant founded by Mike Novogratz, officially opened an office in Abu Dhabi. Not just any office. One registered under the Abu Dhabi Global Market (ADGM), the same jurisdiction that has become the red-carpet destination for every serious player in crypto.
And they’re not alone. Binance, Bybit, Circle, Tether, Ripple – the list reads like the guest list of a very exclusive party. The United Arab Emirates isn’t just dipping its toes in crypto anymore. It’s diving in head-first, and the water looks pretty damn good.
Why the Middle East Suddenly Matters More Than Ever
I’ve been covering institutional crypto adoption for years, and I can tell you this: the shift toward the Gulf has been one of the most under-reported stories of 2025.
Everyone got excited when Miami tried to become “Crypto Capital USA” or when El Salvador bought the Bitcoin dip. Fair enough. But those moves were symbolic. What’s happening in Abu Dhabi and Dubai are doing is structural. They’re building the regulatory rails that sovereign wealth funds, family offices, and global trading firms actually need to allocate serious capital.
Think about it. Where would you rather park a billion dollars in digital assets – a jurisdiction still debating whether crypto is property, a security, or fairy dust, or a financial center that just gave full regulatory blessing to USDT across ten different blockchains?
Galaxy’s Move Isn’t Random – It’s Strategic
Mike Novogratz didn’t wake up one morning and say, “You know what sounds fun? Let’s open an office in the desert.”
Galaxy has been aggressively expanding its global footprint, but the Abu Dhabi office stands out. Bouchra Darwazah, Galaxy’s managing director for the region, called the Middle East “a center of capital, innovation, and investor sophistication.” Translation: there’s an ocean of money here that actually wants exposure to digital assets – and they prefer doing it in a jurisdiction with clear rules.
The timing is fascinating too. Galaxy just reported one of its strongest quarters ever, and they’re co-leading a major Solana treasury initiative with Cantor Fitzgerald and others. Having boots on the ground in ADGM means they can service Middle Eastern limited partners directly, in a time zone that makes sense, under a regulatory umbrella that already understands the asset class.
“The Middle East is increasingly a center of capital, innovation, and investor sophistication.”
– Bouchra Darwazah, Managing Director at Galaxy Digital
ADGM Is Rolling Out the Red Carpet (and It’s Working)
Let’s talk about what Abu Dhabi Global Market has actually done in the last 18 months. Because the list is kind of insane:
- Licensed Binance to operate a full exchange, clearing house, and broker-dealer
- Approved Bybit for full operational licenses in both Dubai and Abu Dhabi
- Recognized Tether (USDT) as an approved fiat-referenced token on ten different chains – Ethereum, Solana, Avalanche, Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON
- Green-lit Circle to operate as a regulated financial service provider
- Approved issuance frameworks for Ripple’s upcoming stablecoin
- Created clear pathways for custody, trading, and settlement of digital assets
That’s not just “crypto-friendly.” That’s building an entire parallel financial system optimized for digital assets.
And the best part? They’re moving fast. While other jurisdictions are still holding year-long consultation periods, ADGM is announcing major approvals seemingly every month.
Why Stablecoins Are the Silent Star Here
Everyone always talks about Bitcoin and Ethereum, but the real institutional gateway drug has been stablecoins. And the UAE gets that.
When ADGM says licensed firms can now use USDT on Polkadot parachains or the TON network for regulated activities, they’re not showing off. They’re removing friction for treasury departments across the region.
Suddenly, a family office in Riyadh or a sovereign fund in Abu Dhabi can hedge currency exposure, settle trade finance, or park liquidity with the same efficiency as Singapore or Switzerland – but with direct on-ramps to the blockchain ecosystem.
I’ve spoken to several regional allocators over the past year, and the consistent feedback is: “We were waiting for regulatory certainty on stablecoins.” Now they have it. In spades.
What This Means for the Broader Market
Here’s where it gets really interesting.
The Middle East isn’t just positioned itself as the single clearest bridge between traditional finance and digital assets. That has ripple effects (no pun intended).
- Institutional inflows – When the $300+ billion sovereign wealth funds start allocating even 1-2%, that’s real money.
- Talent migration – Traders, quants, and compliance teams are already relocating. Dubai’s nightlife helps, sure, but the tax regime helps more.
- Stablecoin dominance – Tether and Circle now have a regulated home base outside the U.S., reducing systemic risk if American politics gets weird again.
- Liquidity shift – We’re already seeing trading volume migrate toward UAE-licensed venues during European and American off-hours.
Perhaps most importantly, the UAE is proving that you can be pro-innovation and pro-regulation at the same time. No need to choose.
The Road Ahead – 2026 and Beyond
If current momentum continues, I wouldn’t be shocked to see the UAE capture 15-20% of global institutional crypto flows within three years.
Galaxy opening an office now is the canary in the coal mine – or rather, the falcon in the desert. When firms of that caliber commit physical presence and regulatory capital, others follow. Fast.
We’re already hearing rumors Kraken, Coinbase International, and several large hedge funds are in advanced talks for ADGM licenses. The dominoes are falling.
And honestly? Good for them. The crypto industry spent years begging for regulatory clarity. The UAE listened, built it, and now they’re reaping the rewards.
So next time someone asks where the smart money is going in 2026, you can skip New York, skip Singapore, and point straight to the desert.
Because while the rest of the world debates, Abu Dhabi is building.
And Galaxy Digital just secured their seat at the table.
