Coinbase joins the increasing number of digital assets firms establishing operations in the United Arab Emirates<\/p>\n
Coinbase announced the launch of Project Diamond, an institutional-facing smart contract platform that will soon enter Abu Dhabi Global Market\u2019s RegLab sandbox.<\/p>\n
Revealed on Dec. 12, Project Diamond leverages Coinbase\u2019s technology and its Ethereum Layer 2 network, Base<\/a>, to facilitate digital asset creation and trading for CeFi institutions.<\/p>\n Coinbase emphasized the opportunity to institutions to realize significant efficiency savings by leveraging distributed technologies (DLT), estimating that just 0.25% of global assets have been migrated on-chain.<\/p>\n \u201cOur goal is to close this gap by enabling institutional use of next-generation financial technology,\u201d Coinbase said<\/a>. \u201cThe platform leverages the Coinbase technology stack and Base to deliver secure, compliant, capital market activity that will continue to unlock institutional adoption of the global cryptoeconomy.\u201d<\/p>\n Coinbase also announced that the first Project Diamond-native digital debt instrument was issued, distributed, and matured on Nov. 10. The asset was denominated in USDC, the second-largest stablecoin.<\/p>\n The pilot was executed as a technical demonstration for the Abu Dhabi Global Market (ADGM)\u2019s Financial Services Regulatory Authority (FSRA) in preparation for Project Diamond joining the ADGM RegLab sandbox.<\/p>\n \u201cThe digital discount note\u2026 was transacted within a single application at near-instant settlement speed on Base,\u201d Coinbase said. \u201cThis on-chain financial activity mirrors the massive flow of debt instruments that power global companies in traditional finance.\u201d<\/p>\n The news comes as Abu Dhabi and other states within the United Arab Emirates (UAE) are working to foster a robust local CeFi sector.<\/p>\n Abu Dhabi, the second-most populous state in the United Arab Emirates, introduced<\/a> a regulatory framework for DLT on Nov. 2, including legal requirements for decentralized autonomous organizations (DAOs), blockchain foundations, and TradFi firms seeking to operate in the region.<\/p>\n \u201cThe introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to\u2026 digital asset development,\u201d said Ahmed Jasim Al Zaabi, Chairman of ADGM.\u201c<\/p>\n Start for free<\/a><\/div>\n Abu Dhabi followed up with the launch<\/a> of an interactive online \u201cCrypto Hub\u201d promoting local DLT firms and projects on Nov 17. The hub\u2019s deployment coincided with Binance receiving regulatory to launch a local subsidiary.<\/p>\n On Nov. 29, Iota launched the IOTA Ecosystem DLT Foundation<\/a> in Abu Dhabi as part of a pivot towards the Middle East and North Africa region. The foundation will work to bridge the gap between legacy and web3 assets by bringing real-world assets on-chain.<\/p>\n On the same day, Paxos received<\/a> in-principle approval to issue stablecoins and provide digital asset services from the FSRA. The regulator gave<\/a> similar in-principle approval for eToro to broker digital assets, securities, and derivatives in Abu Dhabi on Sept. 20.<\/p>\n On Dec. 4, Phoenix Group, a digital asset mining firm, became<\/a> the first crypto company listed on the ADX, Abu Dhabi\u2019s stock market. Phoenix\u2019s share price jumped 50% following a $371 initial public offering.<\/p>\n Abu Dhabi is not alone in its DLT push, with other states within the UAE making moves to embrace digital assets as well.<\/p>\n On Oct. 19, the Arab Emirate of Ras Al Khaimah launched<\/a> the Digital Assets Oasis (RAK DAO), an economic free zone for firms operating in the blockchain and digital asset industries.<\/p>\nAbu Dhabi promotes DLT<\/h2>\n
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Blockchain firms look to UAE<\/h2>\n