News by Altcoin Buzz: Ifeanyi
Mubadala Investment Capital announced its investment through different ventures in MidChains. This is a cryptocurrency exchange that will launch operations late 2019 in Abu Dhabi. The crypto exchange will be located in the international financial center and free zone, Abu Dhabi Global Market (ADGM).
According to reports, the deal marks one of the first instances where Mubadala has invested directly into a digital asset company in the Middle East. It described the digital asset space as “one to watch,” saying that MidChains has what it takes to succeed.
The founders of MidChains said they were in talks with Mubadala for about a year before they finalized the deal. The value of the investment was not disclosed, but they said it was a seven-figure number in US dollars.
“Mubadala has always been a pioneer in the technology space and wants to become a pioneer in investing in new technologies.” said Mohammad Al Hashemi, co-founder of MidChains.
Regulations of transactions
The upcoming company is expected to be regulated by the Abu Dhabi Global Market (ADGM), an offshore jurisdiction taxed with governance and oversight on the asset class of the company.
“We’re an exchange. You can think of it similar to a stock exchange, but where you’re trading equities, for us, it would be crypto. We also perform custody activities, which means we can also store, settle, and clear crypto transactions on behalf of our clients,” Al Askari Co-Founder and CEO of MidChains mentioned.
He further revealed that in the UAE, many organizations have been wary and skeptical of cryptos over the past years.
“If I bring this down to the GCC, I think that there is a hesitation and there is a lot of white space still available. I think if investor concerns are addressed, then appetite will increase in the region and people would be comfortable with existing investment asset classes because adequate oversight is there,” he said.
After the investment from Mubadala Investment Capital, MidChains reported it will raise further capital later in the year. It is already in touch with some impressive investors, including large US organizations.
Before now, Imkan Properties, an Abu Dhabi-based real estate developer, offered its customers the chance to pay for real estate using cryptocurrencies. Therefore, increasing the growth of the industry in the Middle East.