Trading Digital Assets in the Middle East and Beyond

Head of APAC at Talos, Samar Sen, recently spoke with the CEO of AYU, Gus Morison, to discuss digital asset opportunities and insights in the Middle East and beyond. 

Here are three key insights presented by Samar: 

The UAE’s position as a digital assets hub is growing 

The enthusiasm and growth in the blockchain and crypto sector within the Middle East, particularly in Dubai and Abu Dhabi is growing. With regulatory frameworks such as the ADGM in Abu Dhabi and the VARA in Dubai, the region is attracting a wealth of talent and well-known investment firms. 

Providers must cater to TradFi and crypto native firms differently  

Each client type brings unique trading strategies and levels of operational sophistication to the table. For example, despite their high level of sophistication, traditional hedge funds often face a learning curve when entering the digital asset market, particularly around new tech stacks, market connectivity and liquidity options. In contrast, newer crypto funds tend to be leaner and more adept with the nuances of digital assets but are sometimes less familiar with the professional trading toolkit used by the incumbents such as algorithmic execution and TCA.

Tokenization will be a key market segment 

We anticipate that within the next two years, tokenized assets will constitute a significant market segment, even bigger than crypto. This innovation promises to bring liquidity to previously illiquid financial instruments and offer exciting new opportunities to investors.

‍

‍