UAE-headquartered Tungsten has launched after successfully receiving a licence from the Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM).
Tungsten is the first UAE-built and regulated custody platform purposely designed to store digital assets securely for institutional investors. Over 12 months to July 2023, the value of digital assets received by the UAE was over US$34.9 billion. Approximately 67% of that [US$23 billion in transactions] was carried out by institutional investors, demonstrating a significant opportunity for specialist digital assets custody.
Typically, investors face operational risks in managing the complexity of digital assets in-house, with potential for uninsured asset loss. According to Hacken research estimates, 70% of crypto wallets have security gaps. Additionally, investors can face counterparty risks when outsourcing custody to exchanges and OTC brokers.
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.”
Tungsten Background
Chris Desjardins – Tungsten Founder
Tungsten provides secure, regulated custody so clients can confidently invest in digital assets. It is led by Chris Desjardins, an industry veteran with vast experience in building and growing digital assets and cryptocurrency solutions. Previously, he co-founded Big Index, a Canadian institutional crypto wallet technology provider acquired by Brane Inc., where he became Head of Product.
The digital assets firm is independent and segregated from other digital asset services, such as the trading of crypto assets. Instead, it focuses purely on safeguarding clients’ digital assets. A key part of this is ensuring secure online and offline procedures, including bank-grade physical vaults, enterprise-grade wallet management and network hardware.
The company said it plans to scale customer acquisition in 2024, catering to a growing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs). It will also make strategic hires across key functions and invest in technology to enhance its security.
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.”
He added: “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.”
