Emirates NBD enters digital asset space with new crypto offering from Liv

The platform is being implemented through a partnership with Canada's Aquanow, which is licenced by Dubai's Vara

Emirates NBD's new service on its Liv unit will allow customers to buy, sell and trade cryptocurrencies. Victor Besa / The National

Emirates NBD, Dubai's biggest bank by assets, has entered the digital asset space with the launch of cryptocurrency trading services on its Liv lifestyle banking unit, tapping into the growing adoption of virtual assets in the UAE.

The platform on the Liv X mobile app is being implemented through a partnership with Aquanow, a Canada-based digital assets company that is licensed by Dubai's Virtual Assets Regulatory Authority, Emirates NBD said in a statement on Thursday.

Aquanow received its licence in July 2024 and is permitted to conduct broker-dealer, management and investment, and lending and borrowing services to institutional, qualified and retail investors, according to the Vara website.

The new service "will give users an intuitive experience that is straightforward and efficient to use ... [with] robust security protocols to enable secure transactions, providing further assurance to customers", Emirates NBD said.

Cryptocurrencies have long been promoted as an alternative to traditional money.

The UAE has made several moves to encourage the adoption of cryptos built around robust frameworks and legislations, spearheaded by Vara and Abu Dhabi's ADGM.

The Emirates has emerged as the Middle East and North Africa region's third-largest crypto economy after Saudi Arabia and Turkey. The country received around $34 billion worth of cryptos between July 2023 and June 2024, a 42 per cent annual jump that is significantly higher than the Mena average of almost 12 per cent, latest data from Chainalysis shows.

The retail segment presents a particularly strong opportunity, as it is the fastest-growing in the UAE’s crypto ecosystem: small retail and large retail crypto transactions in the country surged by more than 80 per cent annually, the New York-based blockchain company said.

“Unlike most markets globally, the UAE is witnessing crypto adoption across all transaction size brackets. This presents a substantial opportunity for banks to capitalise on and shape the future of finance in the region,” Arushi Goel, head of policy for the Middle East and Africa at Chainalysis, told The National.

The Mena region, meanwhile, ranked the seventh-largest crypto market globally in 2024, with an estimated $338.7 billion received in the same timeframe, accounting for 7.5 per cent of the world’s total transaction volume, Chainalysis said.

“Emirates NBD’s move marks a significant milestone for crypto adoption in the Middle East and will undoubtedly serve as a catalyst for other banks to follow suit,” Ms Goel said.

“Banks have long been the primary facilitators of financial services in the region, and by integrating crypto services into their platforms, they are lowering barriers to entry for consumers.”

The UAE's initiatives have attracted a number of major players in the global digital asset landscape. In October, OKX – one of the largest crypto exchanges in the world – launched a platform for retail investors in the UAE, while cryptocurrency and blockchain solutions company Ripple received an in-principle licence to operate as a payment services provider in Dubai.

In August, Tether, the world's largest stablecoin, announced plans to launch a dirham-pegged stablecoin in the UAE. In April, the Dubai-based subsidiary of cryptocurrency exchange Crypto.com, Cro Dax Middle East, secured a full operational licence from Dubai. Ledger, the French crypto and cyber security firm, recently told The National that it was planning to expand in the Middle East in 2025.

Phil Sham, chief executive of Aquanow, said the partnership is a “testament to the UAE’s emergence as a global crypto hub” and a good example of how banks and FinTechs can collaborate to develop products that benefit the retail customer.

“Incumbent institutions like Emirates NBD will play a pivotal role in driving the next wave of digital asset adoption,” he added.

In 2023, Wio Bank, an Abu Dhabi-based digital bank that was formed in 2022, offered UAE residents access to trade virtual assets in partnership with digital assets infrastructure provider Fuze. This partnership enabled Wio Invest customers to diversify their portfolios with cryptocurrencies like Bitcoin, Ethereum and Ripple.