The digital assets market, having surpassed $2.4 trillion in market capitalization, is fast changing its status quo. With the onset of Bitcoin ETFs powered by leading market participants, digital assets are now being categorized as a verified asset class.
Despite the immense participation from institutional investors, digital assets face significant challenges such as single point of failure, custody risks, governance complications, and compliance navigation.
FSRA in ADGM (Abu Dhabi Global Markets) has proactively established a fair, efficient, and transparent marketplace . This framework supports institutions providing virtual asset services, ensuring a progressive financial services environment.
Unlock the potential of digital assets for your institution
With the vision to expand into the burgeoning Middle East market and become the first ever CCSS-certified digital asset custodian to provide fully authorized custody services to institutions, we applied for the prestigious business license in mid 2022. We got the IPA in the last quarter of 2023, and today, we are proud to share that Liminal Custody has been officially granted the FSP license.
Inside FSRA
The Financial Services Regulatory Authority (FSRA) was established as a financial regulatory body for Abu Dhabi’s business zone. It invites enterprises to operate in a friendly environment and adhere to global standards, driving economic stability, process innovation, and streamlined operations.
All financial entities registered under ADGM must follow a thorough standardization of safety and compliance practices while providing services to their clients. FSRA designed the regulatory framework and provided the license to audit institutions on several parameters, ranging from transparency in operations to risk management.
Secure and manage your digital assets with Liminal
ADGM is deemed as the most progressive and digital-asset-friendly jurisdictions in the world, all because of the FSRA and how they are solving the digital asset regulation conundrum by bringing together policy-makers and stakeholders all under one roof and becoming an international standard-setting body, continuously amending the framework to push the envelope of innovation explicitly.
Why FSP License Is A Big Win For Liminal
Abu Dhabi is rapidly establishing itself as a global hub for digital asset innovation. The city’s forward-thinking regulatory environment and financial prowess make it an ideal breeding ground for blockchain startups and established institutions.
Now that FSRA is in place, institutional digital asset custody practices will become a prime undertaking for all institutions looking to work under ADGM.
As a regulated custodian, Liminal is now authorized to hold, manage, and safeguard digital assets on behalf of its clients, including institutions, hedge funds, and venture capitalists and professional clients.This provides investors with the peace of mind and security they need to participate confidently in the digital asset market.
After taking a stronghold in the Southeast Asia market and entering the MENA region, being an FSRA-certified custodian will enable Liminal to serve with a host of benefits:
Enhanced Credibility and Trust: Acquiring an FSP license signifies regulatory approval, demonstrating Liminal’s commitment to adhering to the highest compliance standards. This will build trust with institutions and users seeking secure solutions for their digital assets.
Expanded Market Reach: The FSP license will allow Liminal to offer its services to a wider range of clients, particularly regulated institutions like exchanges, neo-banks, investment firms, and asset managers. This opens doors to new business opportunities and market segments.
Competitive Advantage: In a crowded custodian market, where everyone is focused largely on building secure wallets and key management solutions, the FSP license differentiates Liminal from its competitors. It positions Liminal as a reliable and compliant partner for institutions navigating the complexities of digital asset custody.
Stronger Regulatory Alignment: The FSP license ensures Liminal operates within the regulatory framework, fostering a collaborative relationship with financial authorities. This promotes innovation within a compliant environment.
Future-Proofing the Business: As regulations around digital assets evolve, Liminal’s FSP license positions them well to adapt and comply with future requirements. This future-proofs their business model and ensures long-term sustainability
Pushing The Narrative Of Secure & Efficient Custody In ADGM
At Liminal, we are redefining how institutions approach digital asset custody. We evoke the highest standards in hot & cold storage, inherently follow the latest compliance norms, allow secure access to liquid markets, and operate in a fully compliant workflow.
Our advanced features, including, automated transaction and balance workflows, robust firewall monitoring, multi – sig wallets, easy reporting and succession planning; empower institutions with unparalleled security, efficiency, and regulatory assurance.
We are immensely proud of this achievement and excited about the boundless possibilities that lie ahead for Liminal as a licensed and regulated digital assets custody provider in the MENA region.
To know more about the custody platform, speak to an expert today. Click here for a free demo.
by Liminal
