Animoca Brands has achieved full regulatory approval to operate as a fund manager in the Abu Dhabi Global Market (ADGM). The clearance elevates the digital asset and gaming company’s operational status in the United Arab Emirates, building upon the initial in-principle approval it secured in 2025. In parallel with its Abu Dhabi footprint, Animoca continues to pursue individual licensing tracks in neighboring Dubai as part of a coordinated regional initiative.
Minh Do, the senior executive officer of Animoca’s Abu Dhabi subsidiary, described the development as a critical milestone for our operations in the Middle East.
The licensing follows regulatory updates enacted by ADGM in September, which streamlined establishment procedures for specialized and institutional funds. However, operational deployment under these rules remains tied to strict compliance protocols, specific fund structuring requirements, and approved custody frameworks established to safeguard investors.
Abu Dhabi Solidifies Institutional Foothold in Web3
The authorization of Animoca Brands aligns with an ongoing influx of international fund managers relocating to or opening hubs within Abu Dhabi. According to official performance metrics, ADGM logged a 54% year-over-year surge in assets under management during the first half of 2026. By that period, the financial hub accommodated 190 asset and fund management companies, 276 registered funds, and 13,974 active enterprise licenses.
The broader regulatory environment in the UAE has contributed to its emergence as a premier destination for digital asset firms. In its 2026 Crypto Adoption Index—which assesses 36 countries across regulatory frameworks, digital infrastructure, and sector-wide innovation—investment migration consultancy Henley & Partners elevated the UAE from fifth to second place globally. Highlighting the institutional implications, ADGM Chief Market Development Officer Arvind Ramamurthy noted that the arrival of Animoca Brands helps reinforce the relationship between capital markets and the expanding digital asset space.
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The arrival of Animoca Brands in ADGM strengthens the connections between institutional capital and digital assets.
Navigating Venture Capital Headwinds in Global and Regional Markets
Despite securing regulatory clearance, Animoca enters the fund management environment against a backdrop of subdued venture capital deployment. Data from Galaxy Research reveals that global crypto venture capital dropped to $4.5 billion across 296 startup deals in the third quarter of 2026, marking a 20% quarter-on-quarter contraction in both total deal volume and aggregate capital deployed. The period saw only three new crypto-focused funds emerge worldwide, representing $1.3 billion in newly raised capital—the lowest quarterly level logged since Q3 2019.
Investment trends across the Middle East and North Africa (MENA) reflect similar restraint. According to private market data firm MAGNiTT, overall cross-industry venture funding across MENA fell by 7% during the first nine months of 2026, while deal volume contracted by 33%. Nonetheless, capital flows remain heavily centralized in select Gulf markets: MAGNiTT recorded that 89% of all venture funding deployed in the region originated from the UAE and Saudi Arabia, cementing their roles as anchors for cross-border technology finance.
Animoca’s Broader Institutional Roadmap
The ADGM fund management permission serves as one component of Animoca’s broader drive to deepen relationships with traditional asset managers. Separately from its Abu Dhabi licensing, Animoca and Nuva Labs announced an initiative with US investment manager Franklin Templeton on October 9. The partnership aims to introduce tokenized real-world assets to NUVA, a digital asset marketplace developed by Animoca and Nuva Labs.
To fully operationalize its fund management practice in Abu Dhabi, Animoca must complete key milestones, including establishing legal fund structures, integrating verified third-party custodians, and obtaining LP commitments. While the firm has not publicly shared details regarding target fund sizes or capital raised to date, the formal ADGM framework provides the essential legal baseline required to deploy institutional investment strategies as market conditions develop.
Why This Matters
The regulatory approval for Animoca Brands provides institutional capital with a regulated on-ramp into the digital asset ecosystem from a premier financial hub. As jurisdictions like the UAE refine asset management frameworks, clear guidelines help counter lingering market headwinds and institutional skepticism. For the wider crypto ecosystem, institutional-grade fund setups and tokenization partnerships with firms like Franklin Templeton reflect a pivot toward compliant, asset-backed investment products that can withstand broader venture downturns.
Frequently Asked Questions
What permissions did Animoca Brands receive from ADGM?
Animoca Brands was granted full regulatory authorization to operate as an institutional fund manager within the Abu Dhabi Global Market (ADGM), upgrading its status from an in-principle approval granted in 2025.
How does the UAE rank in global cryptocurrency adoption?
According to the 2026 Crypto Adoption Index published by Henley & Partners, the United Arab Emirates climbed from fifth to second place globally out of 36 evaluated nations, driven by progressive regulations and infrastructure development.
What challenges are facing new crypto fund launches in 2026?
Crypto asset fundraising faces a global slowdown in venture funding. In Q3 2026, venture capital deployment in crypto startups declined by 20% quarter-over-quarter, and only three new dedicated funds launched worldwide, raising an aggregate of $1.3 billion—the lowest quarterly sum recorded since the third quarter of 2019.
