Abu Dhabi based world’s thirteenth largest sovereign wealth fund, Mubadala Investment Capital, made an investment in MidChains, which is a cryptocurrency exchange.
Mubadala Investment Capital is a state-owned holding company. It was established in January 2017, through the merger of Mubadala Development Company and the International Petroleum Investment Company. It is a wholly-owned investment company of the government of Abu Dhabi, in the United Arab Emirates.
The UAE English language newspaper, Gulf News, reported on August 11 that Mubadala Investment capital has invested in MidChains, a type of digital currency platform which is going to launch by the end of 2019 in Abu Dhabi. The exchange will be located in the free zone Abu Dhabi Global Market (ADGM) and in the international financial center.
Bail Al Askari, the co-founder of Midchains, told the Gulf News that they are an exchange. You can think of it similar to a stock exchange, but where you’re trading equities, for them, it would be crypto. They also perform custody activities, which means they also can store, settle, and clear crypto transactions on behalf of their clients.’’
Al Askari added that he sees Bitcoin as a new investment property rather than a replacement for existing fiat currencies due to which foreign stakeholders have already expressed their interest in using MidChain’s trading platform.
Recently this year, the Financial Services Regulatory Authority of AGDM authorized MidChain to operate a cryptocurrency exchange. This means that when the company will be started, it will be fully regulated by the authority.
The UAE based crypto asset exchange and custodian Arabian Bourse(ABX), which is a joint venture between GMEX Group and Arshad Khan, has received introductory regulatory approval from the ADGM. In order to benefit from the city’s proactive crypto asset regulatory framework, the exchange ABX is to be based in the Abu Dhabi Global Market Authorities Building.
In April, another UAE-based crypto exchange, BitOasis, achieved introductory approval with financial regulators. To get a license, the exchange company has to fit some specific technical and operational requirements, which it expects to do in the second half of the year.
What are your views on the investment done by Mubadala Investment Capital in the digital currency trading platform, Midchains? Let us know in the comment section below!