Emirates NBD-backed and UK-based digital assets platform Zodia Custody is mulling a potential acquisition of Abu Dhabi digital asset custody firm Tungsten Custody Solutions in a bid to expand its footprint in the Middle East, according to a press release.The transaction hinges on the completion of due diligence processes, shareholder and regulatory approvals, along with squaring away customary closing conditions. There’s no publicly available information about the size of the transaction.

Share swap on the table? Under the agreement, Abu Dhabi’s ADQ-backed VC FurtherVentures, a key shareholder and incubator of Tungsten, would also get a stake in Zodia.

A means to an end: Zodia plans to tap into Tungsten’s institutional investors network to build out its operations in the region. The firm would benefit from Tungsten’s ADGM license, as it continues the process of obtaining a license from Dubai’s Virtual Asset Regulatory Authority.

Zodia also made key leadership hires, including ex-Binance executive Dominic Longman (Linkedin) as managing director for the Middle East and Africa, and Zane Suren (Linkedin) to lead regional growth from Abu Dhabi.

It’s already doing some work in the sector in Dubai: The firm is offering custody services for Emirates NBD’s crypto trading platform on Liv X app.

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