Notably, the investment from the Abu Dhabi-based fund will expedite the launch of cryptocurrency trading platform scheduled to be launched in late 2019.
The cryptocurrency exchange will operate from international financial center and free zone Abu Dhabi Global Market (ADGM).
Basil Al Askari, co-founder of MidChains, issued the following opinion regarding the investment:
“We’re an exchange. You can think of it similar to a stock exchange, but where you’re trading equities, for us, it would be crypto. We also perform custody activities, which mean we also can store, settle, and clear crypto transactions on behalf of our clients.”
Overseas investors have already conveyed their interest in using MidChain’s trading platform. Al Askari also stated that he views Bitcoin (BTC) as a fresh investment class instead of an alternative for prevailing fiat currencies.
Earlier in 2019, ADGM’s Financial Services Regulatory Authority approved MidChain to function as a cryptocurrency exchange. This implies that the platform, following the launch, will be under regulatory purview.
Back in June, UAE-powered cryptocurrency exchange and custodian Arabian Bourse (ABX), a partnership endeavor from GMEX Group and Arshad Khan, obtained regulatory clearance from the ADGM. ABX is head-quartered in the Abu Dhabi Global market Authorities Building, supposedly for gaining advantage from the city’s proactive cryptocurrency and regulatory infrastructure.
BitOasis, which is another UAE-based cryptocurrency exchange, obtained authorization from financial regulators in April. To obtain a license, the exchange has to fulfill particular technical and operational criteria, which it anticipates to complete in the second half of 2019.