Animoca Brands Secures ADGM License to Launch Institutional Web3 Funds in Abu Dhabi

Animoca Brands has secured a Financial Services Permission from Abu Dhabi Global Market’s regulator, allowing its asset management arm to operate collective investment funds. For fintech professionals, this marks a significant shift as a major Web3 player moves into regulated fund management, bridging the gap between institutional capital and decentralized digital property rights.

What was announced

Animoca Asset Management (AD) Limited (AAM), a subsidiary of Animoca Brands, has been granted a Financial Services Permission (FSP) by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This authorization enables the firm to manage a Collective Investment Fund within or from the international financial center in the UAE capital. The move is designed to expand Animoca Brands’ institutional capabilities, specifically focusing on the development of institutional-grade blockchain infrastructure and the integration of agentic AI within Web3 environments.

By operating under the ADGM’s regulatory framework, the company intends to connect traditional financial institutions with decentralized networks and advance the market for tokenized assets. This strategic expansion into the Middle East aligns with the firm’s broader mandate to establish digital property rights. The FSP allows AAM to act as a bridge for institutional capital looking to enter the "agentic web" and digital asset space, providing a regulated vehicle for investments that were previously often confined to less formal structures. The permission reinforces Abu Dhabi’s position as a hub for innovation in digital finance, supporting the integration of digital assets into broader financial markets.

"Securing the Financial Services Permission from ADGM’s FSRA is a critical milestone for our operations in the Middle East. It allows us to manage collective investment funds under a robust regulatory framework, bridging institutional capital with the future of the agentic web and digital assets."

Minh Do, Senior Executive Officer and Director of AAM.

The companies involved

Animoca Brands is a prominent global leader in the digital assets sector, perhaps best known for its involvement with platforms like The Sandbox and its extensive investment portfolio in the Web3 ecosystem. The company focuses on building and investing in technologies that support digital property rights, including autonomous agentic AI and decentralized networks. It has established itself as a major force in the gamification and tokenization of digital assets, moving beyond simple gaming to encompass broader financial infrastructure.

Abu Dhabi Global Market (ADGM) serves as the international financial center for the UAE’s capital, providing a legal and regulatory framework based on English Common Law. It has become a primary destination for fintech and digital asset firms seeking a clear regulatory environment in the Middle East. ADGM’s Financial Services Regulatory Authority (FSRA) is responsible for overseeing financial services within the zone, ensuring that firms like Animoca Asset Management adhere to international standards of transparency and risk management. The center has been actively expanding its ecosystem to include a mix of traditional financial institutions and innovative digital finance providers, positioning itself as a bridge between East and West.

What FF News has reported before

FF News has closely tracked the evolution of the Abu Dhabi Global Market as a hub for digital finance. The regulator recently made headlines when ADGM Introduces Region's First Comprehensive Crypto Mining Guidance Framework, signaling its intent to lead on technical standards. Other firms have also sought a foothold in the region; for instance, Alpaca Secures In-Principle Approval from ADGM to Expand Brokerage Infrastructure in UAE and 3iQ Secures ADGM In-Principal Approval to Expand Digital Asset Solutions in UAE. Additionally, the physical presence of global finance in the zone continues to grow, as seen when Advent International Expands Middle East Footprint with New Abu Dhabi Office in ADGM.

What this means

This move by Animoca Brands places significant pressure on other Web3 venture and asset managers to seek formal regulatory status. By moving from a pure investment house to a regulated fund manager in a jurisdiction like ADGM, Animoca is signaling that the "wild west" era of digital asset investing is being replaced by institutional-grade compliance. The industry now faces a critical question: can decentralized technologies maintain their core value proposition while operating within the strictures of traditional financial oversight? As more capital flows through these regulated conduits, the competition between Abu Dhabi and other global hubs like Singapore or London to attract the next generation of AI-driven finance will likely intensify.