Tungsten UAE Gets FSRA Licence Transforming Custody for $23 Billion Digital Assets Industry

Tungsten, headquartered in the UAE, has debuted following the successful acquisition of a license from the Financial Services Regulatory Authority (FSRA) to operate within the Abu Dhabi Global Market (ADGM). As the pioneer UAE-based and regulated custody platform, Tungsten is purpose-built to securely store digital assets for institutional investors. The UAE witnessed an influx of digital assets valued at over US$34.9 billion from June 2022 to July 2023, with approximately 67% (around US$23 billion) of these transactions conducted by institutional investors, underscoring a substantial demand for specialized digital asset custody services.

Traditionally, investors encounter operational challenges when managing the intricacies of digital assets internally, along with the inherent risk of uninsured asset loss. Research by Hacken suggests that 70% of crypto wallets have security vulnerabilities, further exacerbating these concerns. Moreover, entrusting custody to exchanges and over-the-counter (OTC) brokers exposes investors to counterparty risks. Tungsten addresses these challenges with cutting-edge systems and stringent controls that adhere to the highest standards set by governments, institutions, banks, and federal reserves. As a regulated custodian, Tungsten offers institutional investors, including cryptocurrency enthusiasts, peace of mind regarding their digital asset investments.

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We congratulate and welcome Tungsten to Abu Dhabi’s international financial centre, ADGM. As much as the ever-evolving digital asset space needs regulatory controls to protect investors, it also needs risk management services that enable them to understand and invest securely. The concept of Tungsten revolves around this and allows it to harness the opportunities within this industry. As custodian of virtual assets, Tungsten’s offerings, coupled with ADGM’s vibrant ecosystem and progressive regulations for digital assets, will empower investors and maintain market integrity with robust solutions.”

Chris Desjardins, Tungsten Founder and Senior Executive Officer said: “Digital assets present unprecedented opportunities across generations, yet the cornerstone of realising their potential lies in establishing a trusted investment environment. The UAE is at the forefront of this transformation, crafting a robust framework for digital assets that not only sets a global benchmark but also positions it as a pioneering force in the finance sector of tomorrow. Our immense pride stems from being developed and regulated within the UAE, a testament to our commitment to excellence and innovation in this dynamic landscape.”

Under the leadership of industry veteran Chris Desjardins, Tungsten delivers secure and regulated custody solutions, instilling confidence in clients' digital asset investments. Desjardins, previously involved in co-founding Big Index—a Canadian institutional crypto wallet technology provider acquired by Brane Inc.—brings extensive experience and expertise to Tungsten, setting a new standard for digital asset custody. Setting itself apart from other digital asset services, Tungsten focuses solely on safeguarding clients' digital assets, independent of activities like crypto asset trading. The company employs secure online and offline protocols, including bank-grade physical vaults, enterprise-grade wallet management systems, and top-tier network hardware. Furthermore, clients benefit from robust governance frameworks and extensive insurance coverage, offering maximum reassurance to institutional investors.

In 2024, Tungsten plans to expand its customer base, catering to the increasing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs). The company also intends to make strategic hires across key functions and invest in technology to bolster its already robust security measures.