Private equity firms Deus X Capital and Bridgetower Capital are set to launch a new $250 million cryptocurrency infrastructure platform that will provide betting, investing and other digital assets services in cryptocurrency to institutional investors in the Middle East.
According to the joint statement, the new Bridgetower Middle East venture will be based in the Abu Dhabi Global Market, a free trade zone in the capital of the United Arab Emirates, and led by Deus X and Bridgetower CEOs Tim Grant and Corey Pugh. 8 February.
Speaking to Cointelegraph, Grant explained that the initiative aims to build infrastructure to meet the demand for turnkey staking and AI-powered GPU computing in the Middle East, adding:
“[Bridgetower ME] will serve as a launching pad to support a wide range of institutional clients seeking to leverage new technologies in a scalable, interoperable and cost-effective manner.”
The new venture will host nodes in the region for institutional placements and provide enhanced data center capabilities with artificial intelligence (AI) GPUs, Web3 commerce and private equity incubation services.
Meanwhile, Pew said in a statement that they will provide the newly formed entity with more “substantial assets” in addition to the $250 million in self-funded assets in escrow.
“We believe that [региональные регулирующие органы] have created a robust roadmap for companies wishing to conduct their business with the highest ethical and legal standards, which in turn has instilled confidence in others wishing to operate in the region,” Bridgetower CEO told Cointelegraph.
Both parties expressed their willingness to invest in the UAE digital asset ecosystem and potentially explore options for a public listing on the Abu Dhabi Stock Exchange (ADX).
Related: Binance and Crypto Companies Optimistic for UAE Amid Potential US Regulatory Change
Deus X is a boutique investment and operating firm founded in October 2023 with initial assets of $1 billion. The company recently led a $5.5 million funding round for gaming company Web3 Saltwater Games. Meanwhile, digital asset infrastructure provider and private equity firm Bridgetower teamed up with the Solana Foundation in 2021 to form a $20 million fund to develop a blockchain network in the European Union, UK and Switzerland.
The UAE, which includes Abu Dhabi, Dubai and the greater Middle East region, is positioning itself as a global hub for digital assets, attracting investment and international players to set up shop locally.
On November 29, US-based cryptocurrency company Paxos received in-principle approval in Abu Dhabi to issue stablecoins and provide digital asset services. On the same day, open-source blockchain developer Iota announced the launch of a $100 million distributed ledger technology (DLT) fund in the UAE capital.
On October 30, Saudi Arabia's megacity project NEOM partnered with game developer Web3 and investment firm Animoca Brands to build Web3 enterprise services capabilities.