Klumi Ventures, a prominent venture capital firm and fund manager rooted in Abu Dhabi, has announced a strategic partnership with Fuze, a leading provider of regulated digital assets and blockchain infrastructure in the Middle East. This collaboration is designed to bridge the gap between traditional finance and the rapidly advancing realm of digital assets. By leveraging Klumi Ventures’ expertise in investments and Web3 technologies alongside Fuze’s strong infrastructure in digital assets, the partnership is expected to accelerate the adoption of Web3 technologies across the region. The goal is to empower financial institutions by enabling them to seamlessly incorporate regulated digital assets, such as cryptocurrencies, stablecoins, tokenized assets, and central bank digital currencies (CBDCs), into their operations.
The two companies plan to work together on enhancing cross-border payments, utilizing the speed and efficiency of digital assets to streamline the process for financial institutions. Additionally, the collaboration will focus on educational initiatives, including workshops and programs aimed at demystifying blockchain technology for financial institutions. These efforts will address the complexities of regulatory compliance and highlight the potential of digital assets. The partnership will also explore the development of new products and unique use cases, such as specialized over-the-counter (OTC) trading solutions.
This partnership reflects a shared commitment to advancing the Web3 and digital asset ecosystem within the UAE, aligning with the Abu Dhabi Economic Vision 2030. The collaboration also adheres to the regulatory frameworks established by the Abu Dhabi Global Market (ADGM) and the Financial Services Regulatory Authority (FSRA).
According to Klumi Ventures, by aligning Fuze’s vision with Klumi’s investment expertise, the region is poised for substantial growth. The firm highlighted that the partnership not only supports their ongoing commitment to nurturing startups but also enhances their ability to deliver innovative solutions for tokenizing real-world assets and facilitating cross-border payments. The opportunities presented by this partnership are seen as significant, and Klumi Ventures is eager to collaborate with Fuze in shaping the future of digital assets in the region.
Fuze’s leadership also emphasized the critical role that blockchain and Web3 technologies will play in the future success of regional economies. The company conveyed its belief in the transformative potential of blockchain infrastructure and expressed enthusiasm for the innovations that the partnership with Klumi Ventures is expected to foster.
Fuze, backed by Further Ventures, has quickly established itself as a leader in the digital assets sector. The company offers a Digital-Assets-as-a-Service platform that enables banks and fintech firms to integrate regulated digital assets into their offerings. Furthermore, Fuze provides OTC services, facilitating large-scale digital asset transactions for institutions, funds, and high-net-worth individuals (HNIs).
Overall, the partnership between Klumi Ventures and Fuze is expected to significantly enhance the digital asset landscape in the UAE, particularly from the nation’s capital, Abu Dhabi. The collaboration aims to elevate technological capabilities and accelerate the region’s adoption of Web3 technologies. A recent panel discussion organized by the Institute of Chartered Accountants in England and Wales (ICAEW) and the UAE Banks Federation (UBF) noted that the UAE accounts for a substantial portion of global digital asset trading volume, estimated at 5-10%. Additionally, global revenue growth for digital assets is projected to increase by 17.38% by 2025, according to data from Statista.
This strategic partnership between Klumi Ventures and Fuze not only underscores the potential for growth within the digital assets sector in the UAE but also sets a precedent for future collaborations that aim to integrate traditional finance with cutting-edge digital innovations. The joint efforts of these two companies are poised to leave a lasting impact on the financial landscape of the region, driving both innovation and adoption of Web3 technologies.