In an exemplary display of expansion on a global scale, the esteemed Julius Baer Group, a Swiss private banking behemoth, has taken a significant leap into uncharted territories. After a successful launch of Bitcoin and crypto services for their high-value clientele in May 2020, the bank now intends to broaden its crypto horizons in the vibrant city of Dubai. The exotic allure of the United Arab Emirates (UAE) as a pivotal geographical arena for digital assets, primarily due to its robust economic growth, was cited by Jonathan Hayes, head of crypto development at the bank.
The Zurich-based bank’s expansion into Dubai, the first venture beyond Swiss borders, is an evident testament of digital asset adoption at a global scale. As part of its expansion, the bank’s subsidiary, JBME, licensed by the Dubai Financial Services Authority, is speculated to apply for a crypto license modification. Such a change would potentially enable the bank to legally offer custodial services for digital assets.
It’s worth noting that the bank has leveraged its Lombard lending mechanism – which involves borrowing user assets as collateral. This exciting development permits customers to borrow against their digital assets custodied with the bank. This innovation further cements Julius Baer’s commitment to cutting-edge crypto solutions since its partnership with cryptocurrency bank SEBA in 2019.
Dubai, meanwhile, is blossoming into a significant global crypto hub. Recent reports from Recap, a crypto asset management firm, state that Dubai is the second-largest crypto center worldwide. The UAE’s capital’s surge as a hub for crypto innovation can be attributed to its strategic policies and a conducive regulatory environment, notable even amidst the tightening of the Dubai Virtual Asset Regulation Law in the wake of the FTX exchange breakdown.
Prominent crypto exchanges including Binance, OKX, and Crypto.com have all been making strides within the Dubai market in recent times, seeking regulatory approval for operation. Interestingly, OKX’s Middle-Eastern arm landed a Minimal Viable Product (MVP) preparatory license this month, courtesy of the Dubai Virtual Assets Regulatory Authority (VARA). This license allows the provision of approved virtual asset-related services such as virtual asset custody, transfer, and management, for qualified retail and institutional investors in Dubai.
In conclusion, the heightened interest in digital assets and the resulting expansions by banking influencers and regulators alike reinforce the vision of the UAE to become a pivotal hub for the global crypto industry.
Source: Cryptonews
