Alpaca Secures In-Principle Approval from ADGM to Expand Brokerage Infrastructure in UAE

Alpaca Middle East has secured in-principle approval from Abu Dhabi Global Market’s Financial Services Regulatory Authority, marking a significant expansion of its API-driven brokerage infrastructure into the UAE. For fintechs and institutions, this move signals a bridge between traditional capital markets and virtual assets within a major regional financial hub.

What was announced

Alpaca Clearing & Custody ME Ltd, known as Alpaca Middle East, has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This regulatory milestone is the first step toward the entity obtaining a full Financial Services Permission. Once fully authorized, Alpaca Middle East intends to provide brokerage services and custody for virtual assets within the specific scope approved by the regulator.

The move is designed to bring Alpaca’s API-first brokerage and clearing infrastructure closer to its existing and future partners in the Middle East. The firm already maintains relationships with various fintech platforms and financial institutions in the region, supporting services across digital investing, savings, and brokerage. By establishing a regulated base in Abu Dhabi, the company aims to deepen these institutional ties and support regional growth.

This expansion into the UAE follows Alpaca’s established regulatory footprint in several major global markets, including the United States, United Kingdom, Europe, Japan, India, and The Bahamas. Globally, Alpaca’s infrastructure supports more than 15 million brokerage accounts and serves hundreds of fintechs and institutions across more than 50 countries. The company has raised $400 million in funding to date to support its mission of powering access to both traditional and on-chain asset classes.

The companies involved

Alpaca is a global agent-first brokerage and clearing infrastructure provider that enables businesses to offer trading in traditional equities and on-chain assets. The company operates as a technology-driven backbone for the financial sector, providing the APIs necessary for fintechs to embed investment capabilities into their own applications. With a presence in over 50 countries, Alpaca has positioned itself as a critical layer of market plumbing for the modern digital economy, backed by significant venture capital investment.

Abu Dhabi Global Market (ADGM) is the international financial centre located in the capital of the United Arab Emirates. Since its inception, it has become a primary destination for global financial institutions and fintech innovators seeking a robust regulatory environment. The centre’s Financial Services Regulatory Authority (FSRA) is responsible for overseeing the conduct of firms within the zone, ensuring market integrity and investor protection. ADGM has been particularly active in developing frameworks for virtual assets, making it a strategic location for firms like Alpaca that operate at the intersection of traditional finance and blockchain technology.

What FF News has reported before

FF News has closely followed Alpaca’s role in enabling crypto-to-equity trading integrations. Recently, the publication covered how BingX Integrates Alpaca Infrastructure to Launch U.S. Stock Trading with Crypto Assets, allowing users to access multi-asset markets. Similarly, Bybit Launches U.S. Stock Trading: Access 1,000+ Equities and ETFs via USDC highlighted Alpaca’s infrastructure powering access to over 1,000 equities for global users.

Beyond Alpaca’s specific integrations, FF News has reported on the growing institutional interest in Abu Dhabi. This includes coverage of Advent International Expands Middle East Footprint with New Abu Dhabi Office in ADGM, illustrating the trend of major global players establishing a physical and regulated presence within the ADGM ecosystem to capture regional growth and leverage the UAE's position as a capital hub.

What this means

The move by Alpaca to secure a foothold in ADGM highlights the intensifying competition between global financial hubs to attract infrastructure providers that bridge the gap between traditional finance and digital assets. By seeking permission for both brokerage and virtual asset custody, Alpaca is positioning itself against traditional regional custodians and newer crypto-native firms. This development puts pressure on local incumbents to modernize their API offerings or risk losing the next wave of fintech startups to global infrastructure players. The industry now faces the question of whether the UAE’s regulatory clarity will be enough to consolidate its lead as the primary gateway for digital asset innovation in the Middle East.