Zodia Custody has successfully completed its acquisition of Tungsten Custody Solutions, a regulated digital asset custodian based in the United Arab Emirates (UAE). This strategic move significantly strengthens Zodia’s operational footprint in the region and provides access to critical regulatory approvals essential for expanding institutional-grade services across the Middle East.
The transaction follows Zodia’s April announcement of its intent to acquire Tungsten. With the deal now finalized, Zodia Custody gains a Financial Services Regulatory Authority (FSRA) license under the Abu Dhabi Global Market (ADGM) framework. Additionally, the company inherits Tungsten’s initial approval certificate from Dubai’s Virtual Assets Regulatory Authority (VARA), with plans underway to secure full Virtual Asset Service Provider (VASP) licensing in Dubai.
This expansion positions Zodia at the forefront of regulated digital asset infrastructure in one of the world’s most dynamic fintech markets. As institutional demand for secure, compliant custody solutions grows across the Gulf region, Zodia is well-placed to meet rising expectations for transparency, security, and regulatory alignment.
Strategic Alignment with UAE’s Digital Finance Vision
Dom Longman, Global Head of Markets at Zodia Custody, emphasized the long-term strategic value of the acquisition:
“Zodia Custody’s acquisition of Tungsten reflects our deep commitment to the UAE. We’re proud to deepen our presence in a market that leads in digital asset regulation by forming meaningful partnerships within its regulatory framework and unlocking synergies that benefit our clients. We aim to replicate this model of collaboration across all the markets where we operate.”
The UAE has emerged as a global hub for blockchain innovation and regulated crypto adoption, thanks to forward-thinking policies from regulators like ADGM’s FSRA and Dubai’s VARA. By integrating Tungsten’s local expertise and regulatory standing, Zodia enhances its ability to serve international institutions seeking compliant access to Gulf markets.
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Partnership with Further Ventures Strengthens Regional Expertise
Tungsten Custody was incubated by Further Ventures, an Abu Dhabi-based investment firm focused on digital assets and blockchain infrastructure. As part of the acquisition agreement, Further Ventures will join Zodia Custody’s shareholder group and continue contributing its extensive regional network and regulatory insights.
Mohammed Hamdy, Managing Partner at Further Ventures, commented on the milestone:
“From day one, our vision with Tungsten was to build a custody platform that meets global standards while being deeply rooted in the UAE’s regulatory environment. Zodia’s acquisition validates that vision and marks a major step forward for institutional digital asset infrastructure in the region. We’re proud to partner with a team that shares our belief in compliance, security, and the future of borderless finance.”
This collaboration underscores a growing trend: global fintech firms partnering with locally grounded entities to navigate complex regulatory landscapes while delivering scalable, secure services.
Institutional-Grade Infrastructure Meets Regional Demand
Zodia Custody is backed by major financial institutions including SC Ventures (the venture arm of Standard Chartered), Emirates NBD, Northern Trust, SBI Holdings, and NAB Ventures. These partnerships reflect strong confidence in Zodia’s mission to deliver secure, regulated custody and settlement infrastructure tailored for institutional clients.
The company already operates under regulatory approvals in key jurisdictions such as the UK, Ireland, Luxembourg, and Hong Kong. The integration of Tungsten’s UAE operations allows Zodia to extend its reach into a strategically vital market where traditional financial centers are rapidly adopting digital asset frameworks.
With this acquisition, Zodia can now offer:
- Regulated custody solutions compliant with ADGM FSRA and VARA requirements
- Local market expertise through established relationships with regulators and financial institutions
- Scalable infrastructure for institutional investors, hedge funds, and fintech platforms entering the Gulf region
- Cross-border settlement capabilities connecting Middle Eastern markets with global digital finance networks
Driving Consolidation in the Digital Asset Custody Sector
The digital asset custody industry is undergoing significant consolidation as demand for trusted, regulated providers intensifies. Institutions require more than just secure storage—they need full-service platforms that combine compliance, reporting, multi-jurisdictional licensing, and seamless integration with traditional financial systems.
Zodia’s acquisition of Tungsten exemplifies this shift toward consolidation and specialization. By combining global standards with local regulatory alignment, Zodia sets a new benchmark for what institutional-grade custody should look like in emerging crypto hubs.
This integration also enables Zodia to accelerate partnerships across the Gulf Cooperation Council (GCC) region, supporting both legacy financial institutions and new blockchain-native firms in meeting local demand for secure digital asset services.
Frequently Asked Questions (FAQ)
Q: What regulatory licenses does Zodia Custody now hold in the UAE?
A: Following the acquisition, Zodia holds an FSRA license under the Abu Dhabi Global Market framework and has inherited Tungsten’s initial approval from Dubai’s Virtual Assets Regulatory Authority (VARA), with plans to obtain full VASP licensing.
Q: Why is the UAE an important market for digital asset custody?
A: The UAE has established itself as a leader in regulated digital finance through proactive frameworks from ADGM and VARA. Its strategic location, business-friendly environment, and clear regulatory pathways make it a gateway for global institutions entering the Middle East.
Q: Who owns Zodia Custody?
A: Zodia Custody is supported by a consortium of leading financial institutions, including SC Ventures (Standard Chartered), Emirates NBD, Northern Trust, SBI Holdings, and NAB Ventures. Further Ventures has also joined as a shareholder following the Tungsten acquisition.
Q: What services does Zodia Custody offer?
A: Zodia provides institutional clients with secure digital asset custody, fund administration, settlement infrastructure, and compliance-focused solutions across multiple regulated jurisdictions.
Q: Will Tungsten Custody continue to operate under its own brand?
A: While specific branding decisions are subject to ongoing integration plans, the focus is on unifying operations under Zodia’s global platform while retaining Tungsten’s regulatory approvals and regional expertise.
Q: How does this acquisition benefit institutional investors?
A: Investors gain access to a globally trusted custody provider with enhanced local compliance capabilities in the UAE—offering greater security, regulatory clarity, and operational efficiency when accessing Middle Eastern digital asset markets.
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Looking Ahead: A Model for Global Expansion
Zodia’s successful integration of Tungsten signals a broader strategy: combining global best practices with local regulatory intelligence to serve institutions navigating complex cross-border environments. The UAE serves not only as a standalone market but also as a springboard into wider MENA and South Asian regions.
As digital asset adoption accelerates among banks, asset managers, and sovereign entities, having a custody partner with proven regulatory credentials and regional presence becomes increasingly critical.
With strengthened capabilities in one of the world’s fastest-evolving fintech ecosystems, Zodia Custody is poised to play a pivotal role in shaping the future of secure, compliant digital finance across borders.
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