UAE M2 crypto exchange drops business model

M2, the Abu Dhabi based regulated crypto exchange, has dropped its previous business model and is now focusing on being a digital asset wealth management platform.

The firm which is backed by UAE sovereign wealth fund ADQ, with shares also owned by Phoenix Group, has changed its business plan and will now  focus on serving high-net-worth individuals (HNWI), family offices, institutional investors and corporate treasuries, offering them digital asset investment solutions. 

Globally there has been a rising demand for institutional investment in digital assets. An EY survey reported that nearly 60% of institutional investors plan to allocate over 5% of their portfolios to digital assets. M2 believes this appetite is even stronger in the UAE. Sovereign wealth funds like Mubadala have already invested in BlackRock’s Bitcoin ETF fund. 

M2 will offer customized investment strategies and institutional-grade infrastructure. In addition, the exchange is focused on client service, and best-in-class security.

M2 has partnerships with Sui, Ethena, Polygon, Haruko, FireBlocks, NiceHash, and FearsOff. The exchange’s advanced cybersecurity and enhanced operating model enables the provision of regulated custody, yield products, liquidity solutions, and treasury optimization.

James Greenwood, CEO of M2 explained that the company’s strategic direction is to be a trusted bridge between the agility of digital asset markets and the standards of traditional wealth management. He states, “With this in mind, we have redefined our proposition around the evolving priorities of our clients: enhanced custody, deeper engagement, and institutional-grade opportunities within the digital asset economy. M2 stands at the intersection of private capital and precision, where digital wealth is managed with the same discipline, discretion, and depth as any other asset class.”

M2 is one of only few firms worldwide offering Bitcoin-backed mining loans because of its affiliation with UAE Phoenix Group. The firm can also equip institutional clients with robust APIs for seamless portfolio diversification, aligning with the standards of traditional financial providers and bridging the gap between conventional finance and the digital asset economy.

Kim Wong, Managing Director and Head of Treasury at M2, added, “This strategic realignment reflects a long-considered move toward where the industry is headed, and where we are well positioned to serve those navigating it.”

It is noteworthy that M2 Custody Limited is licensed and regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), while M2 Global Wealth Limited (M2GW) is licensed and regulated by the Securities Commission of The Bahamas (SCB).

The UAE has become a competitive environment for crypto exchange and brokerage offerings. This competitiveness is growing as UAE banks enter the scene. As a result, more crypto exchanges may adjust their business models. Other VASPs are also expected to make changes in the near future.