Tungsten receives FSRA licence

Thursday 21 March 2024 09:57 CET | News

UAE-based Tungsten has announced its launch after securing a licence from the Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM).

As per the information detailed in the press release, Tungsten launched its operations after successfully receiving its FSRA licence, with the company being one of the first UAE-built and regulated custody platforms designed to store digital assets securely for institutional investors. According to Chainalysis, over 12 months to July 2023, the value of digital assets secured by the UAE exceeded USD 34.9 billion. Additionally, nearly 67%, or approximately USD 23 billion in transactions, was conducted by institutional investors, underlining a substantial opportunity for specialist digital assets custody.

UAE-based Tungsten has announced its launch after securing a licence from the Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM).

Moreover, investors tend to face operational risks in managing the difficulties of digital assets in-house and the possibility for uninsured asset loss, with research estimating that 70% of crypto wallets have security gaps. Also, investors undergo counterparty risks when outsourcing custody to exchanges and OTC brokers.

Tungsten’s development strategy

With its systems and controls, Tungsten’s security intends to align with the heightened standards governments, institutions, banks, and federal reserves set. Being a regulated custodian, the company focuses on assuring institutions investing in digital assets, including cryptocurrency. According to ADGM’s officials, even if the digital space requires regulatory controls to safeguard investors, the environment also needs risk management services that allow them to understand and invest securely. Tungsten’s approach revolves around this and aims to enable investors to leverage opportunities within the industry. Considering that Tungsten is a custodian of virtual assets, the company’s offering, paired with ADGM’s ecosystem and progressive regulations for digital assets, is set to enable investors and maintain market integrity with improved solutions.

Furthermore, representatives from Tungsten underscored that digital assets currently present several opportunities, however, to achieve their potential, a trusted investment environment must be established. The UAE develops an enhanced framework for digital assets, solidifying the region’s position in the financial landscape. Tungsten is committed to providing advanced solutions in this dynamic landscape. The company offers secure and regulated custody so that clients can invest in digital assets, with it being independent and segregated from other digital asset services and focusing on safeguarding clients’ assets.

Additionally, Tungsten aims to ensure secure online and offline procedures, including physical vaults, wallet management, and network hardware. Clients can also leverage its governance and high insurance coverage, delivering reassurance to institutional investors. Throughout 2024, Tungsten intends to scale customer acquisition, catering to an increasing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs).

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Keywords: digital assets, crypto asset, financial institutions, cryptocurrency, virtual asset
Categories: DeFi & Crypto & Web3
Companies: Abu Dhabi Global Market, Tungsten
Countries: United Arab Emirates
This article is part of category

DeFi & Crypto & Web3

Abu Dhabi Global Market



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