Cryptocurrency heavyweights gather in Abu Dhabi; the UAE is seen as the "new Wall Street of crypto."

Cryptocurrency industry giants flocked to Abu Dhabi, urgently seeking capital injections to revitalize the sluggish market. As Bitcoin lost momentum since October and the industry faced an unexpected downturn, key figures from MicroStrategy founder Michael Saylor to Binance founder Changpeng Zhao appeared in the UAE capital, hoping to secure funding from deep-pocketed local investors. According to a Wall Street Journal report on Sunday, cryptocurrency executives were busy attending various meetings last week, from a Bitcoin Middle East conference to a "whale-only" beach club dinner and a champagne party on a superyacht, actively seeking contact with representatives of the UAE sovereign wealth fund. Representatives from the UAE sovereign wealth fund, which manages $330 billion in assets, were reportedly present at the meetings. The UAE's interest in cryptocurrencies continues to grow. Binance received full approval from Abu Dhabi's financial regulator last week to operate its global trading platform from there. A division of sovereign wealth fund Mubadala disclosed in November that it had tripled its Bitcoin investment, building a position worth approximately $518 million, while also holding an additional $567 million in Bitcoin positions through ETFs. Venture capital firm RockawayX, which recently announced its acquisition by an Abu Dhabi-backed company, has described the UAE as "the new Wall Street of digital finance" in a presentation. However, industry insiders caution that securing UAE funding typically requires years of relationship building and local business commitments, rather than a simple "drop-in and run" transaction. Industry giants are betting on Middle Eastern capital. Faced with a sluggish market, cryptocurrency industry leaders are pinning their hopes on UAE investors. MicroStrategy founder Michael Saylor stated at a Bitcoin Middle East conference that he has been pitching plans to accumulate more digital currency through various financial instruments to "hundreds of investors" in the Gulf region—including sovereign wealth funds. The company's stock price has fallen by more than half since the middle of the year. Saylor's presentation depicted MicroStrategy as a Bitcoin-powered space rocket aiming to achieve a "$20 trillion vision." The president of Metaplanet, a Japanese hotel operator turned Bitcoin hoarder, stated on stage that the company is seeking to raise funds through a new preferred stock program called "MARS," and the company's stock price also fell sharply. Other players seeking opportunities include Dominari Holdings, the Trump family's preferred investment bank, and the investment and securities arm of South Korea's Hanwha Group, which stated its plans to use Abu Dhabi as a regional hub for its foray into crypto products. The downturn in the cryptocurrency market caught the industry off guard. Many participants had expected Trump's full support for the industry to drive accelerated adoption and unlimited profits. However, while the US stock market remained near record highs, Bitcoin lost momentum in October, with a series of market liquidations severely impacting traders and exchanges. Trump's cryptocurrency legislation agenda has also encountered setbacks, with some Democratic lawmakers putting the brakes on a new bill to create a regulatory framework for the digital currency market. This policy uncertainty has further driven industry funds to seek opportunities overseas. In contrast, the UAE's interest in cryptocurrencies continues to grow. Earlier this year, the UAE's state-backed investment company purchased a $2 billion stake in Binance, providing significant funding for the world's largest cryptocurrency exchange. Abu Dhabi is building itself into a crypto financial hub. The UAE is systematically positioning itself as a global cryptocurrency center. The Abu Dhabi government is attracting cryptocurrency startups to set up operations in the city's financial center by offering early-stage funding, free office space, and other incentives. "Liquidity, policymakers, and infrastructure are all here," said Kristiina Lumeste, founder of Abu Dhabi-based venture capital firm Klumi Ventures, which is raising a $100 million cryptocurrency-specific fund from local investors. At the Abu Dhabi Financial Week conference, executives from US blue-chip crypto companies Coinbase and Circle mingled with Wall Street figures—including Bridgewater Associates founder Ray Dalio and Blackstone CEO Steve Schwarzman—as well as representatives from traditional banking giants such as UBS and HSBC. The Crown Prince of Abu Dhabi attended the opening ceremony, and senior executives from Mubadala and other sovereign wealth funds also participated. Localization is key to investment. Despite numerous opportunities, securing funding from the UAE is not easy. Basil Al Askari, co-founder of MidChains, an Abu Dhabi cryptocurrency brokerage backed by Mubadala, noted that many newcomers to the UAE are eager to close deals quickly and return home. He observed that some make a "newbie mistake," assuming someone works for a major UAE investment institution simply because they appear to be Emiratis and are wearing a traditional robe. Al Askari emphasized that, with a few exceptions, convincing sovereign wealth funds or large family offices to invest typically requires years of relationship building and a commitment to developing a local business. RockawayX Chief Growth Officer Samantha Bohbot stated, "They're not looking for someone who parachutes in, takes the money, and leaves. You have to have a substantial stake and stick with it." The company, which had established its headquarters and a local crypto project incubator in the UAE, subsequently announced its acquisition by an Abu Dhabi-backed company.