3iQ Secures ADGM In-Principal Approval to Expand Digital Asset Solutions in UAE

3iQ Middle East Ltd has secured In-Principle Approval for a Category 4 license from Abu Dhabi Global Market’s Financial Services Regulatory Authority. For fintech professionals, this move signals the continued institutionalisation of digital assets in the UAE, providing a regulated bridge for sovereign and institutional capital to enter the crypto ecosystem through a proven investment manager.

What was announced

3iQ Middle East Ltd, the UAE-based sister company of global digital asset pioneer 3iQ Corp, has reached a regulatory milestone with an In-Principle Approval (IPA) for a Category 4 license from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This approval is a critical step in the firm’s strategy to establish a regulated presence within the UAE’s capital, aligning with its broader objective to operate in major digital asset hubs globally.

The move follows the announcement of a strategic partnership with Further, a UAE-based digital asset investment manager. This collaboration allows institutional investors to access digital assets through 3iQ’s Managed Account Platform (QMAP). Notably, QMAP has already attracted $100 million in sovereign-linked seed capital, demonstrating significant regional interest in institutional-grade crypto products. 3iQ is known for its history of innovation in the sector, having listed the first-ever Bitcoin and Ethereum ETFs on a major stock exchange.

The firm's Middle East operations are headed by Rachel Pether, who joined 3iQ in 2023. Pether brings substantial regional experience to the role, having spent nearly ten years at the Abu Dhabi-based sovereign investor Mubadala within their Capital Markets & Treasury team, and previously serving as a senior Advisor for SkyBridge Capital. This local leadership is central to making 3iQ’s investment management offering accessible to accredited investors across the region.

"3iQ has been a huge believer in the UAE as a key digital asset hub with an advanced regulatory regime that protects investors. As a first mover in the provision of innovative digital asset investment solutions, and along with our partnership with Further Asset Management, 3iQ looks forward to cementing a presence in the region, starting with the Abu Dhabi global Market."

Pascal St-Jean, CEO of 3iQ and Coincheck Group.

The companies involved

3iQ Corp is a global pioneer in digital asset investment solutions, recognized for its role in bringing regulated crypto products to traditional stock exchanges. The firm operates internationally, with its Middle East arm now focusing on the burgeoning financial ecosystem in Abu Dhabi. Pascal St-Jean serves as the CEO of 3iQ and is also the Executive Director & Chief Executive Officer at Coincheck Group N.V. The firm's presence in the Middle East is led by Rachel Pether, who is the Head of Middle East at 3iQ.

The Abu Dhabi Global Market (ADGM) is the international financial centre located in the capital of the United Arab Emirates. It provides a progressive regulatory framework designed to support a dynamic digital asset ecosystem. ADGM’s Financial Services Regulatory Authority (FSRA) is responsible for overseeing the licensing and regulation of financial institutions within the zone. Arvind Ramamurthy, who serves as the Chief of Market Development at Nomou, also holds the position of Chief Market Development Officer at ADGM. Additionally, the regional financial landscape includes firms like FG Asset Management, which operates within the broader market that ADGM seeks to regulate and expand.

What FF News has reported before

FF News has extensively tracked the influx of global financial institutions into the Abu Dhabi Global Market. Recently, DK Bank Becomes First Bhutanese Bank to Secure Regulatory Approval in Abu Dhabi's ADGM, highlighting the region's appeal to diverse international players. The trend of major investment firms establishing a foothold is further evidenced by reports that Capital Group Secures ADGM License to Expand Investment Operations in Abu Dhabi and EQT Scales Global Footprint with New Middle East Platform and Abu Dhabi Office. Additionally, the alternatives sector has seen growth with iCapital Secures ADGM License to Scale Alternative Investing in Middle East. These developments underscore ADGM's position as a primary hub for institutional expansion in the Middle East.

What this means

This announcement moves the needle by reinforcing Abu Dhabi’s status as a top-tier destination for institutional digital asset management. By securing an IPA, 3iQ is positioning itself to capture the growing demand from sovereign wealth funds and institutional investors who require regulated vehicles for crypto exposure. This puts pressure on other regional financial hubs to match the ADGM’s regulatory clarity and speed of onboarding. The primary question for the sector is whether this institutional "gold rush" to the UAE will lead to a permanent shift in where digital asset liquidity is concentrated, potentially challenging established hubs in Europe and Asia that have been slower to provide specific regulatory frameworks for managed digital asset accounts.