Friday, November 21, 2025
Happy Friday everyone!
This week delivered a sweeping look at how global institutions—and the UAE in particular—are accelerating into the next chapter of digital finance. Abu Dhabi Investment Council dramatically increased its Bitcoin exposure just before the market turned, underscoring sovereign appetite for crypto despite volatility. The UAE then took a major regulatory step by signing onto automatic global crypto tax reporting, opening consultation ahead of a 2027 rollout. And in traditional finance’s latest blockchain shift, HSBC announced plans to launch bank-backed tokenized deposits in the US and UAE by 2026.
Abu Dhabi Investment Council Tripled Its Bitcoin Exposure Ahead Of Market Crash
📰 What is it about?
Abu Dhabi Investment Council tripled its stake in BlackRock’s iShares Bitcoin Trust to nearly 8 million shares in Q3, a $518 million position revealed in regulatory filings. The move came just before Bitcoin’s surge to a record high and subsequent sharp market downturn.
💡 Why it matters?
The rapid buildup underscores Abu Dhabi’s growing institutional push into digital assets, even amid volatility. With Mubadala and ADIC managing over $1.7 trillion, their actions signal how major sovereign players are shaping global crypto adoption and diversification strategies.
🔜 What’s next?
ADIC says it views Bitcoin as a long-term store of value alongside gold, suggesting continued exposure despite ETF outflows. As central banks and governments test crypto reserves, Abu Dhabi’s stance hints at deeper integration of digital assets into sovereign investment portfolios.
UAE Signs Crypto Tax Reporting Agreement, Launches Industry Consultation
📰 What is it about?
The UAE has signed the OECD’s Crypto-Asset Reporting Framework agreement, committing to automatic international crypto tax data sharing from 2028. Crypto firms must meet new reporting rules by 2027, with an eight-week public consultation now finished.
💡 Why it matters?
The move aligns the UAE with global tax transparency standards while reinforcing its positioning as a major digital-asset hub. Clear reporting obligations follow earlier steps such as VAT exemptions on crypto and Dubai’s regulatory framework for Web3 companies.
🔜 What’s next?
The Ministry of Finance’s consultation ended November 8, gathering industry feedback before finalizing implementation. Authorities will shape detailed compliance expectations ahead of the 2027 rollout and subsequent cross-border information exchanges.
HSBC To Roll Out Bank-Backed Tokenized Deposits In The US And UAE By 2026
📰 What is it about?
HSBC plans to introduce bank-backed tokenized deposits in the US and UAE by 2026, bringing blockchain-based versions of traditional deposits to mainstream banking. These digital representations of bank funds aim to offer faster, more secure, and more transparent transactions.
💡 Why it matters?
The US and UAE are major fintech hubs with strong regulatory momentum and rising demand for digital financial infrastructure. HSBC’s move signals growing institutional adoption of blockchain, promising efficiency gains, lower costs, and improved financial inclusion.
🔜 What’s next?
HSBC will work with regulators in both markets to shape compliant frameworks ahead of launch. The bank’s initiative could pave the way for wider adoption of tokenized banking products as global financial institutions accelerate digitalization.
