Zodia Completes Acquisition of UAE Digital Asset Custodian Tungsten

Zodia Custody announced Monday it has completed the acquisition of Tungsten Custody Solutions, a regulated digital asset custodian based in the United Arab Emirates, strengthening the firm's presence in the Middle East market.

Financial terms of the Tungsten acquisition were not disclosed.

The transaction, first announced in April, gives Zodia Custody access to Tungsten's Financial Services Regulatory Authority license in Abu Dhabi Global Market (ADGM), one of the region's leading regulatory frameworks for digital assets. The acquisition also provides Zodia Custody with an Initial Approval Certificate from Dubai's Virtual Asset Regulatory Authority, which the company will continue to pursue for full Virtual Asset Service Provider licensing, according to the announcement.

Zodia Custody is backed by major financial institutions including Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD. The platform provides digital asset custody, treasury, and settlement services to institutional clients globally.

"Zodia Custody's acquisition of Tungsten reflects our long-standing and ongoing commitment to the UAE," Dom Longman, global head of markets at Zodia Custody, said in a statement. "We are excited to deepen our presence in a market that is leading digital asset regulation through meaningful collaboration and revenue synergies with businesses operating under its authority."

The deal brings Further Ventures, Abu Dhabi's digital asset-focused venture capital firm, onto Zodia Custody's investor roster. Further Ventures incubated Tungsten from its inception and maintains connections within the UAE's investment and regulatory ecosystem.

"From day one, our ambition with Tungsten was to help build a custody platform that meets the highest global standards while being deeply rooted in the UAE's regulatory frameworks," said Mohammed Hamdy, managing partner at Further Ventures. "Zodia Custody's acquisition is a validation of that vision and a major step forward for institutional digital asset infrastructure in the region."

The UAE has positioned itself as a hub for digital asset innovation through comprehensive regulatory frameworks in both Abu Dhabi and Dubai. The ADGM's FSRA license provides Zodia Custody with authorization to operate digital asset custody services under established regulatory oversight, while the VARA licensing pathway offers additional expansion opportunities within Dubai's financial sector.

Zodia Custody operates under multiple jurisdictional authorizations including licenses from the Financial Conduct Authority, Central Bank of Ireland, Commission de Surveillance du Secteur Financier, and Hong Kong Companies Registry. The addition of UAE regulatory approval expands the firm's geographic reach in a key Middle Eastern market.

The acquisition comes as consolidation activity increases in the digital asset custody sector, with institutional investors seeking established, regulated service providers. Zodia Custody's backing by traditional financial institutions and multi-jurisdictional regulatory approach positions the firm to benefit from continued institutional adoption of digital assets.