Abu Dhabi State Fund Invests $243 Billion in Cryptocurrency Ecosystem
He asserts that the fund is investing in the crypto ecosystem, highlighting blockchain technology and energy as the firm’s primary focus areas:
From our vantage point, I believe we see the crypto ecosystem as a whole. And I believe we are making an investment in that ecosystem. This might be due to advancements in block-chain technology, energy consumption, or other factors.
Mubadala, which is affiliated with Crown Prince Mohammed bin Zayed, manages $243 billion in assets. The organisation first ventured into cryptocurrencies in 2019 when it invested in MidChains, the UAE’s first legal cryptocurrency exchange.
MidChains began trading with four cryptocurrencies in late September (Bitcoin, Bitcoin Cash, Litecoin and Ethereum). Mubadala’s CEO, who also owns the Manchester City football club, is adamant about avoiding any association with bitcoin naysayers. He asserts that the technology is “genuine,” citing the industry’s quick rise from $250 billion to $3 trillion in only a few years:
Numerous individuals are doubters. That is not the case with me. This, I believe, is true. Al-Mubarak states that cryptocurrency laws are not yet finalised.
However, he feels that at some time, this regulatory system will have to alter. In this approach, Bitcoin as an asset class will be able to evolve into “something new.”
The UAE’s Central Bank has yet to regulate cryptocurrency assets, having previously said that it did not recognise the unique asset class. For the time being, the Emirati dirham is the country’s sole legal currency.