Key Takeaways
- • Animoca Brands announced on November 2, 2026 that its Abu Dhabi subsidiary received permission from authorities to operate collective investment funds, giving the crypto investor a regulated route to raise capital.
- • No funds or investment commitments have been publicly disclosed yet, so the permission is not yet evidence of capital raised.
- • Abu Dhabi Global Market (ADGM) reported a 54% year-on-year rise in AUM in H1 2026, with 190 fund and asset managers, 276 funds and 13,974 active licences.
- • Global crypto venture funding fell in Q3 2026: Galaxy Research counted about $4.5 billion across 296 deals, down 20% from Q2, with only 3 new crypto venture funds formed, the fewest since Q3 2019.
- • MAGNiTT reported MENA venture funding down 7% and deal activity down 33% for the first nine months of 2026, with about 89% of regional funding coming from the UAE and Saudi Arabia.
Summary
Animoca Brands said on November 2, 2026 that its subsidiary had received permission from Abu Dhabi authorities to operate collective investment funds. The approval gives the cryptocurrency investor a regulated way to raise capital at a time when venture investment in the sector is contracting. No funds or investment commitments have been made public. According to Minh Do, senior executive officer of the Abu Dhabi subsidiary, the permission is "a critical milestone for our operations in the Middle East." The approval follows a 2025 in-principle approval, and Animoca has also pursued a separate licensing process in Dubai.
The permission carries restrictions. It excludes retail clients, and the article notes that ADGM's September rule change, which simplified requirements for smaller funds and funds serving only institutional investors, may benefit Animoca. Whether the company meets those requirements will depend on how it structures the fund and arranges custody.
The license comes as Abu Dhabi attracts more asset managers. ADGM reported a 54% year-on-year rise in assets under management in the first half of 2026, with 190 fund and asset managers, 276 funds and 13,974 active licences. Henley & Partners moved the UAE to second place in its 2026 Crypto Adoption Index from fifth in 2025, ranking it among 36 jurisdictions assessed. ADGM's chief market development officer, Arvind Ramamurthy, said the expansion "strengthens the connections between institutional capital and digital assets."
The capital backdrop is weaker. According to Galaxy Research, about $4.5 billion was raised across 296 cryptocurrency startup deals in Q3 2026, a 20% decline from Q2 in both capital and deal count. Only three new crypto venture funds were formed, the fewest since Q3 2019, totaling about $1.3 billion. MAGNiTT data, which covers venture capital across industries rather than crypto alone, showed MENA venture funding down 7% and deal activity down 33% over the first nine months of 2026, with about 89% of regional funding from the UAE and Saudi Arabia.
The license sits within a broader institutional push. On October 9, Animoca and Franklin Templeton announced plans to bring tokenized real-world assets to NUVA, a vault marketplace co-incubated by Animoca and Nuva Labs. That initiative is separate from the ADGM permission. The remaining work is structuring a fund, arranging custody and securing investor commitments. Until Animoca announces a fund and capital raised, regulatory access should not be read as capital inflows.
The permission carries restrictions. It excludes retail clients, and the article notes that ADGM's September rule change, which simplified requirements for smaller funds and funds serving only institutional investors, may benefit Animoca. Whether the company meets those requirements will depend on how it structures the fund and arranges custody.
The license comes as Abu Dhabi attracts more asset managers. ADGM reported a 54% year-on-year rise in assets under management in the first half of 2026, with 190 fund and asset managers, 276 funds and 13,974 active licences. Henley & Partners moved the UAE to second place in its 2026 Crypto Adoption Index from fifth in 2025, ranking it among 36 jurisdictions assessed. ADGM's chief market development officer, Arvind Ramamurthy, said the expansion "strengthens the connections between institutional capital and digital assets."
The capital backdrop is weaker. According to Galaxy Research, about $4.5 billion was raised across 296 cryptocurrency startup deals in Q3 2026, a 20% decline from Q2 in both capital and deal count. Only three new crypto venture funds were formed, the fewest since Q3 2019, totaling about $1.3 billion. MAGNiTT data, which covers venture capital across industries rather than crypto alone, showed MENA venture funding down 7% and deal activity down 33% over the first nine months of 2026, with about 89% of regional funding from the UAE and Saudi Arabia.
The license sits within a broader institutional push. On October 9, Animoca and Franklin Templeton announced plans to bring tokenized real-world assets to NUVA, a vault marketplace co-incubated by Animoca and Nuva Labs. That initiative is separate from the ADGM permission. The remaining work is structuring a fund, arranging custody and securing investor commitments. Until Animoca announces a fund and capital raised, regulatory access should not be read as capital inflows.
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