Token Bay Capital Expands VC Footprint in Abu Dhabi

Token Bay Capital Limited, a venture capital (VC) fund that invests in Web3 and crypto start-ups in Hong Kong and the UAE, on Thursday said that it was expanding its venture capital footprint in Abu Dhabi and has been granted an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) to carry out regulated activities in the Abu Dhabi Global Market (ADGM).

Subject to final regulatory approval for the grant of the Financial Services Permission (FSP), Token Bay brings niche capabilities to manage both token and equity investments in early-stage crypto start-ups under the FSRA’s Venture Capital Fund Manager (VCFM) framework.

Founded in 2021, Token Bay is a leading Crypto VC Fund that has adopted a regulatory-first approach from day one. Token Bay invests in start-ups building next-generation blockchain infrastructure and decentralised applications for Web3.

Building on the success of its first fund, Token Bay is now launching its second fund and will continue to back outstanding entrepreneurs building infrastructure solutions for the new token economy. In addition to Abu Dhabi, Token Bay also has offices in Hong Kong, and is strategically positioned across digital assets hubs in both the Middle East and Asia.

Thanking FRSA for its granting IPA, Token Bay’s Founder and Managing Partner Lucy Gazmararian said this marked the first phase of global expansion for Token Bay for venture capital investment in tokens as well as in equity.

Impact of Blockchain Technology

She said that blockchain technology has the potential to drive innovation through tokenisation, and as blockchain networks continue to evolve, it is important that as venture capitalists they were fully equipped to support talented founders building in Web3 by directly participating in these networks and taking an ownership stake through tokens.

ADGM’s progressive regulatory framework, English common law legal framework, status as a leading centre for financial innovation and vibrant blockchain and digital assets ecosystem have attracted Token Bay to set up offices in the capital of the UAE.

ADGM’s Chief of Market Development Arvind Ramamurthy said that Token Bay Capital’s joining ADGM’s international financial centre and commence their establishment in Abu Dhabi, marked the beginning of their global expansion journey.

He added: “ADGM is dedicated to cultivating innovation and excellence in the financial sector, particularly within the virtual asset space. With progressive regulatory frameworks that facilitate companies like Token Bay Capital, ADGM’s vibrant ecosystem stands as the optimal platform for initiating their global growth trajectory.”

Token Bay’s Venture Funds offer institutions, multi-national companies, private banks, family offices and high-net-worth individuals the opportunity to invest in an emerging asset class right at the start of a multi-decade cycle.