The United Arab Emirates is not deciding between Bitcoin and the wider cryptocurrency landscape. Rather, it is intentionally developing both across different cities for varying adoption phases.
Abu Dhabi, the UAE’s capital, has established itself as a center for institutional Bitcoin (BTC) infrastructure, focusing on custody, over-the-counter (OTC) liquidity, mining, and regulated capital markets. In contrast, Dubai has cultivated a more comprehensive crypto economy that includes payments, stablecoins, Web3 applications, gaming, tokenization, and consumer products.
While this indicates a distinction, industry experts highlighted that it represents a unified strategy rather than fragmentation. “The two approaches complement each other,” said Gregg Davis, producer of Bitcoin MENA, the UAE’s largest Bitcoin event.
“A broad digital-asset ecosystem naturally draws attention to the most secure and well-established asset — Bitcoin. Together, they foster a diverse and vibrant market throughout the UAE,” Davis told Cointelegraph.
Dubai’s ecosystem enhances participation and real-world application, according to Matthias Mende, co-founder of the Dubai Blockchain Center and founder of the Web3 social verification platform Bonuz.
“In simple terms, Abu Dhabi is establishing ‘crypto Wall Street,’ while Dubai is creating the environment where people actively engage with this technology daily,” Mende said.
Abu Dhabi’s Bitcoin-first institutional thesis
Davis argued that Abu Dhabi’s strategy rests on a clear delineation between Bitcoin and the broader cryptocurrency landscape.
“Abu Dhabi has recognized that Bitcoin is distinct from the wider digital-asset space,” Davis noted. “Much of what is categorized as ‘Web3’ remains speculative or focused on issues that may not require resolution.”
Davis indicated that the ambition to establish Abu Dhabi as a center for institutional Bitcoin is becoming apparent.
“The entry of major entities in Abu Dhabi into Bitcoin is a strong sign of long-term commitment,” he told Cointelegraph. He remarked that clearer regulatory frameworks and public-sector support have made the emirate attractive to Bitcoin-centric firms.
Recent events support this institutional Bitcoin thesis. Abu Dhabi has become a focal point for large-scale, regulated Bitcoin operations, highlighted by the launch of the Bitcoin MENA 2025 event, which gathered institutional investors, miners, and infrastructure providers to discuss custody, mining, and treasury strategies.
Globally recognized companies, like Galaxy Digital, have expanded into Abu Dhabi under the ADGM framework, citing regulatory clarity and institutional demand. In the meantime, crypto exchange Binance has received full regulatory approvals for trading, clearing, and custody.
Dubai builds the crypto economy layer
While Abu Dhabi focuses on institutional frameworks, Dubai has adopted a broader strategy, creating a regulatory environment designed to support entire industries built on digital assets.
“Dubai aims to construct a complete crypto economy around that,” Mende informed Cointelegraph. “Consumer applications, brands, payments, gaming, creators, and tokenization.”
He explained to Cointelegraph that the convergence of stablecoins, tokenized real-world assets (RWAs), and consumer-oriented apps has produced a new economic layer that transcends mere trading.
“Stablecoins will be the visible component — straightforward ‘scan, tap, pay’ processes — while RWAs introduce significant institutional capital on-chain,” Mende stated, adding that blockchain-based digital IDs, non-fungible tokens (NFTs), vouchers, and tickets make the entire system user-centric and “practical for daily life.”
Dubai’s regulatory clarity has been a significant enabler of its crypto economy vision. “The main enabler is clarity,” Mende asserted. “Founders understand which activities are regulated, what licenses they require, and which regulations apply, allowing them to create products and token models with a clear path forward.”
However, this clarity does not eliminate all friction. Mende mentioned that challenges persist at the intersection with traditional finance, especially regarding banking and fiat on- and off-ramps, as well as in more experimental fields such as decentralized finance and DAOs, where frameworks are still developing.
Related: State Street, Galaxy and Ondo join tokenized cash race with 24/7 sweep fund
Stablecoins emerge as the first mass-use rail
As Dubai’s crypto economy matures, numerous industry leaders highlight payments and stablecoins as the primary area of robust, real-world adoption.
“Payments and stablecoin infrastructure will lead because they address a universal and pressing issue: cross-border settlement that is slow, costly, and fragmented,” Patrick Ngan, chief investment officer at Zeta Network Group, stated to Cointelegraph.
According to Ngan, regulatory clarity lends confidence to financial institutions, encouraging them to integrate digital settlement avenues directly into commerce. “Once those avenues are established, volume will follow,” he added. “That is where the first resilient, real-world adoption will surface.”
SingularityDAO founder Marcello Mari echoed this perspective. He noted that stablecoins are already more incorporated into daily activities than many outsiders realize.
“In Dubai, USDT and USDC are utilized more than you might think — for rent, remittances, real estate, and service payments,” Mari expressed. “Gaming and Web3 creators will follow, but stablecoins represent the initial bridge to real-world utility.”
Besides crypto-native businesses, stablecoins have garnered interest from mainstream companies in the UAE. Recently, state-owned telecom giant e& announced plans to test a dirham-backed stablecoin for bill payments.
Nevertheless, both Ngan and Mari emphasized that, while regulatory clarity is present, operational timelines and banking relationships remain the most significant bottlenecks. “The regulations are clear, but the process requires patience and strong operational discipline,” Ngan stated.
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