Animoca Brands, a Hong Kong-based leader in blockchain gaming and digital assets, has achieved a significant regulatory milestone in Abu Dhabi. On November 2, the company revealed that its subsidiary had secured official approval to operate collective investment funds within the Abu Dhabi Global Market (ADGM).
Scope and restrictions of the approval
According to ADGM’s Financial Services Regulatory Authority (FSRA), Animoca Asset Management (AD) Limited has been granted Financial Services Permission No. 250097. This permission, effective from October 13, 2026, authorizes the company to manage collective investment funds in or from the ADGM jurisdiction.
The FSRA decision comes with several notable restrictions. Animoca is not permitted to serve retail clients or to take custody of client assets, meaning all future funds must be available only to institutional and professional investors. Asset custody must be arranged through an external provider, in accordance with ADGM regulations.
Recent regulatory reforms at ADGM introduced in September have made it simpler for specialist and institutional funds to launch, potentially benefitting firms like Animoca. However, access to these measures depends on specific fund structures and custody arrangements, as ADGM rules are designed to enhance investor protection and compliance.
This full regulatory approval advances the company’s position compared to its in-principle clearance received in 2025. Animoca has also pursued separate licensing pathways in the neighboring Dubai financial center. In a comment, Minh Do, the senior executive officer of Animoca’s Abu Dhabi subsidiary, described the development as a “critical milestone for our operations in the Middle East.”
Abu Dhabi’s growing appeal for asset managers
Animoca’s expansion into Abu Dhabi fits into a broader surge of global asset managers establishing a presence in the financial hub. ADGM reported a 54% year-on-year increase in assets under management during the first half of 2026, with a total of 190 fund and asset management firms, 276 funds, and 13,974 active licenses.
The United Arab Emirates has strengthened its appeal as a cryptocurrency hub. Henley & Partners, a consultancy specializing in investment migration, moved the UAE from fifth to second on its 2026 Crypto Adoption Index. The index ranks 36 countries based on regulatory environment, digital infrastructure, and innovation within the cryptocurrency sector.
For ADGM, Animoca’s new permission brings digital assets further into the institutional mainstream. Chief market development officer Arvind Ramamurthy emphasized that the move strengthens the link between capital markets and the crypto economy.
The arrival of Animoca Brands in ADGM strengthens the connections between institutional capital and digital assets.
Mini dictionary: Abu Dhabi Global Market (ADGM) is an international financial center and free zone in Abu Dhabi, UAE, offering a business-friendly regulatory framework and attracting global financial institutions and fintech ventures.
Venture capital backdrop remains challenging
Timing for new fund launches remains difficult due to the downturn in venture capital across the crypto sector. Galaxy Research reported that $4.5 billion was invested in 296 crypto startup deals worldwide during Q3 2026, reflecting a 20% quarterly decline in both funds raised and deal count. Only three new crypto venture funds were established in this period, totaling $1.3 billion—the lowest such figure since Q3 2019.
A similar contraction is visible in the wider Middle East and North Africa region. Research platform MAGNiTT reported a 7% decline in total venture funding across all industries and a 33% drop in deal activity in the first nine months of 2026. According to MAGNiTT, 89% of regional funding originated from the UAE and Saudi Arabia, illustrating the region’s central role in driving investment activity despite the global slowdown.
| Metric | Q2 2026 (Global) | Q3 2026 (Global) | MENA First 9 Months 2026 |
|---|---|---|---|
| Total VC Capital Raised | $5.6 billion | $4.5 billion | N/A |
| Number of Deals | 370 | 296 | N/A |
| Crypto Venture Funds Launched | N/A | 3 ($1.3 billion) | N/A |
| Venture Funding Change | N/A | -20% | -7% |
| Deal Activity Change | N/A | -20% | -33% |
Animoca’s multi-faceted institutional ambitions
The new fund manager license is only one part of Animoca’s broader effort to expand institutional engagement. On October 9, Animoca and Franklin Templeton—an American investment firm—announced plans to bring tokenized real-world assets to NUVA, a digital asset marketplace developed by Animoca and Nuva Labs. This project operates independently from the Abu Dhabi license.
Looking ahead, Animoca must still structure its inaugural fund, secure third-party custody arrangements, and attract investor commitments. No specific funds or capital raised have been announced. Regulatory approval provides a vital foundation, but actual investments will depend on Animoca’s ability to execute its fund strategy and respond to market conditions.
