Deus X Capital and Bridgetower Capital, two private equity firms, are preparing to introduce a groundbreaking crypto infrastructure platform worth $250 million in the Middle East. This initiative, called Bridgetower Middle East, will be headquartered in the Abu Dhabi Global Market, a free economic zone located in the capital of the United Arab Emirates (UAE). Tim Grant and Cory Pugh, the CEOs of Deus X and Bridgetower respectively, will lead this new entity. The main objective of the platform is to cater to the needs of institutional investors in the Middle East by offering various services such as crypto staking, investing, and other digital asset services.
In an interview with Cointelegraph, Grant explained that the primary goal of this venture is to establish an infrastructure that can meet the growing demand for turnkey staking and artificial intelligence (AI) graphical processing units (GPUs) computing in the Middle East. He further mentioned that the new entity will provide institutional staking services by hosting nodes in the region. Additionally, they will offer advanced data center capabilities with AI GPUs, Web3 commerce, and private equity incubation services.
On the other hand, Pugh stated in a press release that they plan to bring additional “substantial assets” to Bridgetower Middle East, in addition to the already self-funded $250 million worth of assets under depository. He expressed confidence in the region’s regulatory framework, stating that regional regulators have created a strong roadmap for companies operating in an ethical and legal manner, thereby instilling confidence in others looking to operate in the region.
Both Grant and Pugh have affirmed their commitment to investing in the UAE’s digital asset ecosystem and have expressed interest in exploring potential public listing options on the Abu Dhabi Stock Exchange (ADX).
Deus X Capital, a specialist investment and operating firm, was launched in October 2023 with an initial asset value of $1 billion. Recently, they led a funding round worth $5.5 million for Web3 gaming firm Saltwater Games. On the other hand, Bridgetower Capital, a digital asset infrastructure provider and private investment equity firm, collaborated with the Solana Foundation in 2021 to establish a $20 million fund aimed at developing the blockchain network in the European Union, the United Kingdom, and Switzerland.
The UAE, particularly Abu Dhabi and Dubai, has been actively positioning itself as a global digital asset hub. The country has been successful in attracting investments and international players, encouraging them to establish a presence in the region. For instance, on November 29, 2023, Paxos, a US-based crypto firm, received in-principle approval in Abu Dhabi to issue stablecoins and conduct digital asset services. On the same day, Iota, an open-source blockchain developer, announced the launch of a $100 million-backed distributed ledger technology foundation in the UAE capital. Additionally, on October 30, 2023, Saudi Arabia’s mega-city project NEOM partnered with Web3 games developer and investment firm Animoca Brands to develop Web3 enterprise service capabilities.
Overall, Deus X Capital and Bridgetower Capital’s launch of Bridgetower Middle East is a significant development for the crypto industry in the Middle East. With the UAE’s growing focus on becoming a digital asset hub, this new platform is expected to attract institutional investors and contribute to the region’s digital asset ecosystem.