The UAE will not be selecting between Bitcoin and a broader cryptocurrency. Instead, each are deliberately being built, in numerous cities and for various phases of introduction.
Abu Dhabi, the capital of the United Arab Emirates, has positioned itself as a hub for Bitcoin (BTC)-focused institutional infrastructure, with an emphasis on custody, over-the-counter (OTC) liquidity, mining and controlled capital markets. In contrast, Dubai has built a broader crypto economy that features payments, stablecoins, Web3 apps, gaming, tokenization and consumer-focused products.
While this shows a difference, industry participants noted that it is a layered strategy quite than fragmentation. “The two approaches are complementary,” said Gregg Davis, producer of Bitcoin MENA, the most important Bitcoin-focused event within the UAE.
“A broad digital asset ecosystem naturally draws attention to the safest and most proven asset – Bitcoin. Together, they create a various and dynamic market within the UAE,” Davis told Cointelegraph.
According to Matthias Mende, co-founder of Dubai Blockchain Center and founding father of social verification platform Web3 Bonuz, Dubai's ecosystem maximizes participation and real-world usage.
“Simply put, Abu Dhabi is constructing the 'crypto Wall Street' while Dubai is constructing the place where people actually use this technology daily,” Mende said.
Michael Saylor on the Bitcoin MENA event. Source: Cointelegraph
Abu Dhabi's first institutional Bitcoin thesis
Davis argued that Abu Dhabi's strategy relies on a transparent distinction between Bitcoin and the broader crypto landscape.
“Abu Dhabi has done quite a lot of work to grasp that Bitcoin stands out from the broader digital asset landscape,” Davis said. “Much of what falls under 'Web3' stays speculative or based on problems that will not require resolution.”
According to Davis, the intention to position Abu Dhabi as a hub for institutional Bitcoin is already evident.
“The involvement of major corporations in Abu Dhabi in Bitcoin is a powerful signal of long-term conviction,” he told Cointelegraph. He added that clearer regulatory pathways and public sector support have made the emirate attractive to Bitcoin corporations.
Recent developments support this institutional Bitcoin thesis. Abu Dhabi has emerged as a hotspot for large-scale, regulated Bitcoin activity, highlighted by the launch of the Bitcoin MENA 2025 event, which brought institutional investors, miners and infrastructure providers to the emirate to debate custody, mining and treasury strategies.
Global corporations akin to Galaxy Digital have expanded into Abu Dhabi under the ADGM framework, citing regulatory clarity and institutional demand. Meanwhile, crypto exchange Binance has received full regulatory approvals for trading, clearing and custody.
Dubai is constructing the crypto economic layer
While Abu Dhabi focuses on institutional rails, Dubai has taken a broader approach, making a regulatory environment designed to support entire industries built on digital assets.
“Dubai is attempting to construct the complete crypto economy around it,” Mende told Cointelegraph. “Consumer apps, brands, payments, games, developers and tokenization.”
He told Cointelegraph that the convergence of stablecoins, tokenized real-world assets (RWAs), and consumer-facing apps has created a brand new level of economics that goes beyond trading.
“Stablecoins will probably be the visible part – easy 'scan, tap, pay' operations – while RWAs bring serious institutional capital to the chain,” Mende said, adding that blockchain-based digital IDs, non-fungible tokens (NFTs), vouchers and tickets make the complete system human-centric and “useful for on a regular basis life.”
Dubai’s regulatory clarity has been a key think about the vision of the crypto economy. “The biggest enabler is clarity,” Mende said. “Founders know what activities are regulated, what license they need, and what algorithm they fall under, in order that they can design products and token models with a transparent path.”
However, this clarity doesn’t eliminate all friction. Mende told Cointelegraph that challenges live on on the interface with traditional finance, particularly within the banking and fiat entry and exit space, in addition to in additional experimental areas akin to decentralized finance and DAOs, where the framework remains to be evolving.
Stablecoins are proving to be the primary mass rail
As Dubai's crypto economy continues to evolve, several industry leaders point to payments and stablecoins as the primary area of sustained, real-world adoption.
“Payments and stablecoin infrastructure will cleared the path because they solve a universal and urgent problem: cross-border settlement, which is slow, expensive and fragmented,” Patrick Ngan, chief investment officer at Zeta Network Group, told Cointelegraph.
According to Ngan, regulatory clarity gives financial institutions the arrogance to integrate digital settlement rails directly into trading. “Once those rails are in place, the amount follows,” he said. “Then there will probably be the primary everlasting, real introduction.”
SingularityDAO founder Marcello Mari echoed this sentiment. He said stablecoins are already more embedded in on a regular basis activities than many outside the region realize.
“In Dubai, USDT and USDC are literally used more often than you’re thinking that – for rent, remittances, real estate and repair payments,” Mari said. “Gaming and Web3 developers will follow, but stablecoins are the primary bridge to real-world utility.”
Aside from crypto-native corporations, stablecoins have attracted the eye of mainstream corporations within the UAE. On Thursday, state-owned telecom giant e& said it was preparing to check a dirham-backed stablecoin for bill payments.
However, each Ngan and Mari said that while there may be regulatory clarity, operational timelines and banking relationships remain the most important bottlenecks. “The rules are clear, but the method requires patience and robust operational discipline,” Ngan said.
