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3iQ Middle East Ltd received in-principle approval for a Category 4 licence from the Financial Services Regulatory Authority of the Abu Dhabi Global Market on October 12 2026 according to a company announcement. The conditional approval allows the firm to establish a regulated presence in ADGM once it satisfies remaining requirements but does not yet authorise regulated activities. It follows a strategic partnership with Further a UAE-based digital asset investment manager to create multi-strategy hedge funds for institutional clients through 3iQ’s Managed Account Platform which has drawn $100 million in sovereign-linked seed capital.
The Toronto-based 3iQ which pioneered Bitcoin and Ethereum exchange-traded products on a major stock exchange aims to maintain regulated operations in all leading digital asset hubs globally the announcement stated. Rachel Pether 3iQ’s head of Middle East said “This is an exciting development for 3iQ and has materialised following constructive collaboration with the ADGM’s proactive regulator”. The approval positions the firm to offer its award-winning investment solutions to accredited investors across the region.
Arvind Ramamurthy chief market development officer at ADGM congratulated 3iQ on the milestone in the announcement. He highlighted that the step reflects growing interest from international firms in ADGM’s digital asset ecosystem which operates under a progressive regulatory framework. Ramamurthy added that the authority looks forward to supporting 3iQ as it completes the licensing process and contributes to Abu Dhabi’s digital asset community.
ADGM recorded a 36 percent rise in assets under management during 2025 according to the financial centre’s annual review while the number of active licences climbed 30 percent to more than 12,000. The FSRA issued 120 in-principle approvals that year up almost 32 percent year on year as the jurisdiction drew crypto firms including Galaxy Digital and Binance which obtained a global licence in December 2025. Workforce numbers within ADGM expanded 51 percent to 44,339 over the same period.
Category 4 licences in ADGM generally cover advising and arranging activities allowing approved entities to engage professional clients in virtual asset-related services under the FSRA’s virtual asset framework. The regulator has licensed such activity since 2018 and requires firms to adhere to standards on capital compliance custody and anti-money laundering controls. Only FSRA-designated accepted virtual assets such as Bitcoin and Ethereum may be used in regulated products.
3iQ’s expansion into ADGM forms part of the broader institutional adoption of digital assets in the Middle East where sovereign-linked capital has increasingly flowed into crypto strategies. The Canadian manager’s platform has already attracted significant seed investment from sovereign sources the announcement noted. No specific timeline for full authorisation was provided in the company statement.
