Abu Dhabi is laying the foundation for institutional-grade Bitcoin business, while Dubai is integrating payments, stablecoins, and Web3 applications into everyday business scenarios.
Article by: Ezra Reguerra
Source: Cointelegraph
Article compiled by: Chang
The United Arab Emirates is not choosing between Bitcoin and the broader crypto industry. Instead, it is consciously pursuing both paths simultaneously in different cities and at different stages of adoption.
Abu Dhabi, the capital of the United Arab Emirates, is positioning itself as a hub for institutional-grade Bitcoin (BTC) infrastructure, focusing on custody, over-the-counter (OTC) liquidity, mining, and regulated capital markets. In contrast, Dubai is building a broader crypto economy encompassing payments, stablecoins, Web3 applications, gaming, tokenization, and consumer-facing products.
While the two approaches differ, industry insiders point out that this reflects a tiered strategy rather than a fragmented one. Gregg Davis, organizer of Bitcoin MENA, the UAE's largest Bitcoin-themed event, stated, "These two paths are complementary."
In an interview with Cointelegraph, Davis said, "A broad digital asset ecosystem naturally draws attention to the safest and most time-tested asset – Bitcoin. The combination of the two has created a diverse and vibrant market in the UAE."
According to Matthias Mende, co-founder of the Dubai Blockchain Centre and founder of the Web3 social verification platform Bonuz, Dubai's ecosystem maximizes engagement and real-world use cases.
Mende stated, "Simply put, Abu Dhabi is building a 'crypto Wall Street,' while Dubai is building a place where people can actually use this technology every day."
Abu Dhabi's "Bitcoin First" Institutional Logic
Davis believes that Abu Dhabi's strategy is built on a clear understanding of how to differentiate Bitcoin from the broader crypto space.
"Abu Dhabi has done in-depth research and understands that Bitcoin is very different from the broader digital asset space. Much of what is categorized as 'Web3' remains highly speculative or built around problems that don't exist."
Davis stated that the intention to position Abu Dhabi as an institutional-grade Bitcoin hub is already evident. He told Cointelegraph, "The fact that major Abu Dhabi institutions are starting to engage with Bitcoin is a strong signal of long-term confidence." He added that a clearer regulatory path and public sector support make the emirate attractive to Bitcoin-native companies.
Recent developments further validate this institutionalized Bitcoin logic. Abu Dhabi has become a focal point for large-scale, regulated Bitcoin events, including Bitcoin MENA 2025, which attracts institutional investors, miners, and infrastructure providers to discuss hosting, mining, and financial strategies.
Global companies like Galaxy Digital have expanded their operations under the ADGM framework, citing clear regulations and strong institutional demand. Meanwhile, crypto exchage Binance has also obtained full regulatory licenses covering trading, clearing, and custody.
Dubai is building a crypto-economic layer.
While Abu Dhabi focused on an institutional track, Dubai took a broader approach, designing a regulatory environment that supports the development of the entire digital asset industry.
Mende told Cointelegraph, "Dubai is building a complete crypto economy around this. Consumer apps, brands, payments, games, creators, and tokenization."
He stated that the integration of stablecoins, tokenized real-world assets (RWA), and consumer-facing applications creates a new economic layer that transcends transactions themselves.
Mende said, "Stablecoins will be the most visible layer—a simple 'scan, tap, pay' process—while RWA will bring real institutional capital onto the chain."
Dubai's regulatory clarity is a key driver of this vision. Mende stated, "The biggest driving force is clarity. Entrepreneurs know which activities are regulated, what licenses are needed, and which rulebook applies, so they can design products and token models along a clear path."
However, this clarity has not eliminated all friction. Mende points out that the interface with traditional finance remains challenging, especially in the process of depositing and withdrawing fiat currency between banks, as well as in experimental areas such as DeFi and DAOs that are still developing.
Stablecoins became the first track to achieve widespread adoption.
As Dubai’s crypto economy develops, several industry leaders have pointed out that payments and stablecoins will be the first sector to achieve durable, real-world adoption.
Patrick Ngan, chief investment officer at Zeta Network Group, told Cointelegraph, "Payments and stablecoin infrastructure will be the first to break through because they address a common and pressing problem: slow, expensive, and fragmented cross-border settlements."
Ngan stated that regulatory clarity gives financial institutions the confidence to directly integrate digital settlement tracks into their business systems. "Once these tracks are in place, transaction volumes will naturally follow," he said. "True real-world adoption will emerge from here."
SingularityDAO founder Marcello Mari shares the same view. He stated that stablecoins have a greater penetration into daily life than many outsiders imagine.
Mari said, "In Dubai, USDT and USDC are used more in practice than you might imagine—for rent, remittances, real estate, and service payments. Game and Web3 creators will follow suit, but stablecoins are the first bridge to real-world utility."
Beyond crypto-native companies, stablecoins have also attracted the attention of mainstream businesses in the UAE. On Thursday, state-owned telecom giant e& announced it was preparing to test a dirham-pegged stablecoin for bill payments.
However, both Ngan and Mari stated that despite the clearer regulations, operational timelines and bank relationships remain the biggest bottlenecks. Ngan said, "The rules are indeed clear, but the process itself requires patience and rigorous execution."
