Zodia Custody has successfully completed its acquisition of Tungsten Custody Solutions, a regulated digital asset custodian based in the United Arab Emirates (UAE). This strategic move significantly strengthens Zodia Custody’s operational footprint in the UAE and brings essential regulatory approvals that support its expansion of institutional services across the Middle East.
The acquisition follows Zodia’s initial announcement of its intent to purchase Tungsten back in April. With the transaction now finalized, Zodia Custody gains a Financial Services Regulatory Authority (FSRA) license under the Abu Dhabi Global Market framework. Additionally, the company inherits Tungsten’s Initial Approval Certificate from Dubai’s Virtual Assets Regulatory Authority (VARA) and will continue progressing toward obtaining a full Virtual Asset Service Provider (VASP) license.
Strengthening Regional Influence Through Strategic Acquisition
Dom Longman, Global Head of Markets at Zodia Custody, emphasized the long-term commitment to the UAE, stating:
“The acquisition of Tungsten by Zodia Custody underlines our long-term commitment to the UAE. We are excited to further embed our presence in this market-leading digital assets regulatory jurisdiction by engaging in meaningful partnerships and realizing revenue synergies with businesses within the UAE’s regulatory perimeter. We aim to replicate this partnership model across all the markets in which we operate.”
This acquisition reflects a growing trend of consolidation within the digital asset custody sector, driven by increasing institutional demand for secure and compliant infrastructure.
Partnership and Vision Alignment
Tungsten Custody was originally incubated by Further Ventures, an Abu Dhabi-based investment firm focused on digital assets. As part of the acquisition, Further Ventures will join Zodia Custody’s equity structure and continue to contribute its regional network and regulatory expertise.
Mohammed Hamdy, Managing Partner of Further Ventures, commented:
“From day one, our vision with Tungsten was to help build a custody platform that meets the highest global standards while being deeply rooted within the UAE’s regulatory framework. Zodia Custody’s acquisition is a validation of that vision and a significant step forward for institutional digital asset infrastructure in the region. We are proud to partner with an organization that shares our conviction around compliance, security, and the future of borderless finance.”
Institutional Backing and Global Reach
Zodia Custody is supported by major financial institutions including SC Ventures (Standard Chartered), National Bank of Fujairah, Northern Trust, SBI Holdings, and National Australia Bank Ventures. The company offers tailored custody, fund management, and settlement infrastructure designed for institutional clients. It already holds registrations and regulatory approvals in the UK, Ireland, Luxembourg, and Hong Kong.
The integration of Tungsten’s operations will enable Zodia Custody to better serve clients seeking secure and compliant digital asset services in strategically important markets. It also allows Zodia to accelerate partnerships across the Gulf region, addressing growing local demand for institutional-grade services in both traditional financial hubs and emerging crypto-focused jurisdictions.
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The UAE continues to play a central role in shaping the future of regulated digital finance, making it a pivotal market for global custodians.
Frequently Asked Questions
What does Zodia Custody’s acquisition of Tungsten mean for the UAE market?
This acquisition enhances Zodia Custody’s regulatory standing and operational capacity in the UAE, allowing it to offer more robust services to institutional clients. It also reflects the growing importance of the UAE as a regulated digital asset hub.
What regulatory approvals does Zodia gain through this acquisition?
Zodia Custody obtains an FSRA license from the Abu Dhabi Global Market and inherits Tungsten’s initial VARA approval from Dubai. The company will continue pursuing a full VASP license.
How does this acquisition benefit institutional investors?
Institutional investors gain access to a more integrated and compliant custody platform with stronger local regulatory compliance and expanded service capabilities in the Middle East.
Will Further Ventures remain involved after the acquisition?
Yes, Further Ventures will become part of Zodia Custody’s equity structure and will continue to provide regional expertise and networking support.
What regions does Zodia Custody now operate in?
Following the acquisition, Zodia Custody has strengthened its presence in the UAE and maintains operations and regulatory approvals in the UK, Ireland, Luxembourg, Hong Kong, and now key markets in the Middle East.
Is the digital asset custody industry seeing more consolidation?
Yes, this acquisition is part of a broader trend of consolidation as firms seek to expand their geographic and regulatory reach to meet growing institutional demand.