ZEA sets a new course: a two-step digital asset strategy establishes a model for global financial centers

The United Arab Emirates has proposed a bold plan to transform the digital assets sector through a precise division of responsibilities between Abu Dhabi and Dubai. Each emirate plays a specific role in the ecosystem: Abu Dhabi becomes the foundation of institutional Bitcoin infrastructure as the safest asset, while Dubai develops consumer applications and Web3 payment systems. This strategy represents a planned market architecture, not a random dispersal of efforts – as explained by Cointelegraph. Gregg Davis, producer of Bitcoin MENA, confirms that both initiatives reinforce each other, creating numerous opportunities for institutional investors and retail users simultaneously.

Dubai builds an ecosystem of actions for everyday users

The emirate has prepared comprehensive regulatory frameworks that go far beyond trading alone. Matthias Mende from Dubai Blockchain Center describes Dubai’s vision as a fully-fledged cryptocurrency economy, where consumer applications, brands, payment systems, and creators are essential infrastructure elements. Stablecoins play a key role as a bridge between the virtual and real worlds – enabling simple transactions through scanning systems, while tokenized real assets attract on-chain institutional capital.

Blockchain-based identifiers, NFTs, and vouchers making cryptocurrencies practical everyday tools. VARA (Virtual Assets Regulatory Authority) has established transparent protocols for service providers, meaning entrepreneurs know exactly which activities require licenses and what set of rules applies.

The state telecommunications operator e& has already announced stablecoin testing linked to the dirham for bill settlements. Patrick Ngan from Zeta Network Group emphasizes that a diversified payment infrastructure will drive mass adoption – cross-border settlements are currently characterized by slowness, high costs, and market fragmentation. When appropriate channels appear, volume will naturally increase.

Marcello Mari, founder of SingularityDAO, notes that USDT and USDC already facilitate rent payments, money transfers, and real estate transactions in Dubai. Web3 games and projects will follow a similar path. Stablecoins are a bridge between the material reality and technological possibilities.

Abu Dhabi positions itself as an institutional Bitcoin pillar

The emirate’s capital has attracted significant institutional activity thanks to clear regulatory frameworks. Abu Dhabi Global Market (ADGM) is known as the first jurisdiction in the world to implement comprehensive virtual asset regulations in 2018 – reports DLA Piper.

The emirate’s hospitality towards major players has resulted in several key decisions. Galaxy Digital has significantly expanded its presence in ADGM, while other key financial institutions have obtained broad regulatory permits covering trading, settlement, and custody of assets.

Circle received an ADGM license on December 9, 2025, enabling it to provide regulated payment and settlement services. USDC can now operate in both major financial centers – Abu Dhabi and Dubai.

Davis correctly notes that Abu Dhabi recognizes Bitcoin’s unique position among a broader spectrum of digital assets. While much of Web3 remains speculative or addresses issues that may not require decentralized solutions, Bitcoin stands out as the safest and most serious asset. Large institutional investments in Bitcoin send clear signals of conviction to the entire market.

Multi-layered regulatory architecture as a competitive advantage

The division of responsibilities between the emirates is not accidental dispersal – it is a planned structure aligned with international capital market standards. The Securities and Commodities Authority acts as a federal supervisor, while ADGM and DIFC (Dubai International Financial Centre) operate as independent financial zones with their own regulators. VARA regulates activities outside the DIFC zone in Dubai.

This architecture opens doors for both experimentation and specialization. ADGM allows the issuance of tokens linked to fiat currencies, VARA oversees all activities related to virtual assets in Dubai outside special zones, and the Central Bank controls stablecoins linked to the dirham. Federal rules apply in other areas.

This regulatory layered structure attracts both institutional participants and retail players. Transparency of regulations eliminates uncertainty for companies and consumers. The balance between innovation and oversight creates an environment where financial institutions can confidently integrate digital settlement channels with traditional trading.

Highest cryptocurrency adoption in the world

Data shows that the UAE set a world record – 25.3% of the population owns digital assets. Since 2019, the adoption rate has increased by 210%, and in 2022, over 34% of residents had contact with cryptocurrencies. These figures reflect the efforts of both emirates to create an inclusive digital asset ecosystem.

The two-tiered UAE strategy positions the country as a comprehensive and versatile hub for entire digital asset sectors – from institutional Bitcoin trading to consumer payment applications. Abu Dhabi attracts corporate capital through regulated markets, while Dubai generates retail and business activity through accessible technologies. No one directly competes with anyone; everyone wins in the long term.