Galaxy Establishes Foothold in Abu Dhabi
Galaxy is set to open a new office and establish an Abu Dhabi Global Market (ADGM)-registered entity, marking a significant expansion of its presence in the Middle East. This strategic move underscores the region's growing importance as a core market for global digital asset firms. The company announced this development on Wednesday, emphasizing that the new office will enhance its capabilities to collaborate with partners, investors, and institutions throughout the area.
Bouchra Darwazah, Galaxy's managing director, commented on the expansion, stating, "The Middle East is a rapidly growing financial hub that is home to some of the world’s most sophisticated investors and innovators. It has become a particularly influential region for our investors, clients, and portfolio companies, and we believe this office will help establish new opportunities as a leading global digital assets investment and infrastructure firm."
The new Abu Dhabi entity will operate under the Abu Dhabi Global Market registration authority. ADGM has actively positioned itself as a regulated environment conducive to crypto trading, custody services, stablecoin issuance, and investment firms. For Galaxy, this expansion provides direct access to a financial center that has streamlined licensing and oversight processes for digital asset operations.
Investor Insight: Strategic Regional Base
ADGM has emerged as one of the most transparent regulatory pathways for cryptocurrency firms seeking institutional engagement. Galaxy's decision to establish a presence here indicates that leading asset managers now view the United Arab Emirates as a strategic base rather than a secondary market.
Galaxy's Growth Strategy and Middle East Integration
Galaxy reported a net income of $505 million in the third quarter of 2025, supported by $3.2 billion in equity. Since 2018, the company has been active across trading, asset management, and infrastructure, building significant stakes in numerous projects and funds. A recent notable investment plan involves Galaxy joining a $1.65 billion Solana treasury fund, alongside prominent firms like Cantor Fitzgerald, Multicoin Capital, and Jump Crypto.
The establishment of the new Abu Dhabi entity grants Galaxy a regulated operational footprint within a region that has become a central focus for major asset managers. With sovereign funds, family offices, and regional banks increasingly allocating capital to digital assets, Abu Dhabi and Dubai are now serving as direct conduits for institutional capital flows that would typically be routed through traditional financial centers like London or Singapore.
This strategic move by Galaxy also follows a period where the company has expanded its client relationships beyond the United States. This diversification was partly influenced by regulatory delays encountered with certain products in U.S. markets. Abu Dhabi presents a pathway for continued growth without the uncertainties associated with licensing timelines.
UAE's Welcoming Stance on Crypto Firms
The United Arab Emirates has consistently facilitated the entry of global cryptocurrency companies into its regulatory frameworks. Major exchanges, including Binance and Bybit, have secured approvals to operate in either Dubai or Abu Dhabi, establishing a strong operational presence in a region where regulators have clearly defined rules for digital asset trading and custody.
Stablecoin issuers have also seen significant progress. In November, ADGM permitted regulated firms to utilize Ripple's Ripple USD (RLUSD). More recently, the center recognized Tether's USDt as an "accepted fiat-referenced token," and Circle received approval to operate as a financial service provider, paving the way for USDC to be offered under formal regulatory oversight.
These developments signify a coordinated regional approach that provides both investors and companies with predictable operating conditions. Both ADGM and Dubai's Virtual Assets Regulatory Authority (VARA) have developed comprehensive licensing programs that encompass custody, trading, token issuance, and payment services, creating an attractive structure for global operators seeking regulatory clarity.
Investor Insight: Unmatched Regulatory Openness
The UAE continues to attract exchanges, stablecoin issuers, and asset managers at a rate that surpasses most other jurisdictions. This regulatory openness is now directly translating into institutional capital inflows and the launch of new financial products.
Future Outlook for Galaxy in the Middle East
With the Abu Dhabi office in development, Galaxy is poised to strengthen its relationships with a wide range of institutions across the Gulf region, including sovereign funds, trading firms, and infrastructure partners. The region's combination of substantial capital, regulatory clarity, and robust demand for digital asset products has made it a highly competitive destination for international players.
For ADGM, the addition of Galaxy to its growing roster of regulated entities reinforces its strategy of attracting firms involved in asset management, tokenization, custody, payments, and stablecoin operations. The financial center has become one of the few jurisdictions globally where companies can operate large-scale digital asset businesses under clear and defined rules.
Galaxy's expansion exemplifies a broader trend: global digital asset firms are not only establishing regional offices but are actively integrating the Middle East into their core operational networks. With high liquidity, government support for fintech innovation, and increasing adoption of tokenized systems, Abu Dhabi is solidifying its position as a long-term hub for the digital asset sector.