Bitcoin: Dubai bets $1.5 billion on BTC and real estate

The Thousand and One Bitcoins of the Emirates. Standard Asset Company (SAC) establishes its headquarters in Abu Dhabi Global Market (ADGM), the international financial center of Abu Dhabi.

With a member of the Dubai royal family among its advisors and shareholders, the company projects $1.5 billion between bitcoin and real estate. An announcement that comes as sovereign funds have taken the place of hedge funds on Bitcoin ETFs.

A reserve of bitcoins to finance the stone

Published Tuesday October 27 by Dubai Standard, the press release was relayed Thursday October 29 by the Watcher.Guru account.

This headquarters must manage a $1.5 billion strategy, still at the project stage. The envelope is divided between an institutionally managed bitcoin reserve and high-end real estate. For the moment, it has not communicated either a timetable or a distribution between the two asset classes.

The network of advisors and shareholders mixes the political and crypto worlds. They include Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, a member of the Dubai royal family, and former White House chief of staff Mick Mulvaney.

Coinbase is also involved: Brett Tejpaul, co-CEO of Coinbase Institutional, sits among the advisors, alongside Briton Iain McNicol, member of the House of Lords.

On the founders' side, Sakhib Waseem, Adam Ali and Mason Borda have solid experience in institutional markets and digital assets.

Indeed, the trio claims to have advised on transactions exceeding $7 billion in total. The digital asset offerings he has supported exceed a billion dollars.

The Sheikh says he is proud to see the digital economy joining the traditional economy in the Emirates. The strategy with Coinbase is to bring institutional discipline and expertise to the vehicle's digital holdings, then reinvest the returns in UAE hospitality and real estate.

Why are the Emirates attracting bitcoin reserves?

For the Bitcoin component, SAC retained Coinbase Asset Management, appointed exclusive asset manager, under the chairmanship of Anthony Bassili, a former BlackRock employee.

Brett Tejpaul, for his part, sees the Emirates as a nerve center for the global adoption of digital assets.

For his part, Sakhib Waseem, co-chief executive of SAC, observes that institutions around the world want to hold digital and physical assets side by side.

Few vehicles know how to manage these two universes with real institutional discipline. The person concerned also considers the regulatory clarity of the Emirates and their long-term economic vision to be decisive.

The company finally presents this alliance of American and Emirati expertise as a means of strengthening commercial ties between the United States and the Emirates. Incidentally, Abu Dhabi welcomes a new headquarters.