Key Takeaways
- • Token Bay Capital Limited received an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to carry out regulated activities under the FSRA's Venture Capital Fund Manager (VCFM) framework.
- • The IPA permits Token Bay to manage both token and equity investments in early-stage crypto start-ups, subject to final grant of a Financial Services Permission (FSP).
- • Token Bay, founded in 2021 and operating with an Abu Dhabi office and a Hong Kong office, is launching its second fund following its first.
- • Token Bay's Venture Funds are positioned to offer institutions, multinational companies, private banks, family offices and high-net-worth individuals exposure to an emerging asset class.
Summary
Token Bay Capital Limited, a crypto-focused venture capital fund manager, has been granted an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to carry out regulated activities in the ADGM. The approval is subject to final regulatory approval for the grant of a Financial Services Permission (FSP). Under the FSRA's Venture Capital Fund Manager (VCFM) framework, the firm would be able to manage both token and equity investments in early-stage crypto start-ups.
Founded in 2021, Token Bay describes itself as a leading crypto venture capital fund that has taken a regulatory-first approach from inception. The firm invests in start-ups building blockchain infrastructure and decentralized applications for Web3. Having built on the success of its first fund, Token Bay is now launching a second fund. In addition to Abu Dhabi, the firm has an office in Hong Kong and describes itself as positioned across digital asset hubs in the Middle East and Asia.
Founder and Managing Partner Lucy Gazmararian described the approval as the first phase of the firm's global expansion, stating that it allows Token Bay to invest in tokens as well as equity. She said that participating directly in blockchain networks through tokens allows venture capitalists to better support founders building in Web3. Gazmararian thanked the regulator for its forward-thinking approach and open dialogue.
ADGM Chief of Market Development Arvind Ramamurthy welcomed Token Bay, stating that ADGM is dedicated to cultivating innovation in the financial sector, particularly within the virtual asset space. ADGM cited its progressive regulatory framework, English common law legal system, and established blockchain and digital assets ecosystem as reasons for attracting the firm. Token Bay's Venture Funds are offered to institutions, multinational companies, private banks, family offices and high-net-worth individuals as a way to invest in an emerging asset class at an early stage of what the firm describes as a multi-decade cycle.
Founded in 2021, Token Bay describes itself as a leading crypto venture capital fund that has taken a regulatory-first approach from inception. The firm invests in start-ups building blockchain infrastructure and decentralized applications for Web3. Having built on the success of its first fund, Token Bay is now launching a second fund. In addition to Abu Dhabi, the firm has an office in Hong Kong and describes itself as positioned across digital asset hubs in the Middle East and Asia.
Founder and Managing Partner Lucy Gazmararian described the approval as the first phase of the firm's global expansion, stating that it allows Token Bay to invest in tokens as well as equity. She said that participating directly in blockchain networks through tokens allows venture capitalists to better support founders building in Web3. Gazmararian thanked the regulator for its forward-thinking approach and open dialogue.
ADGM Chief of Market Development Arvind Ramamurthy welcomed Token Bay, stating that ADGM is dedicated to cultivating innovation in the financial sector, particularly within the virtual asset space. ADGM cited its progressive regulatory framework, English common law legal system, and established blockchain and digital assets ecosystem as reasons for attracting the firm. Token Bay's Venture Funds are offered to institutions, multinational companies, private banks, family offices and high-net-worth individuals as a way to invest in an emerging asset class at an early stage of what the firm describes as a multi-decade cycle.
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