ARP Digital Secures Dubai VARA License to Expand GCC Institutional Services
The Bahrain-based provider now offers regulated digital asset to UAE dirham conversions for institutional clients.
Bahrain-based institutional digital asset infrastructure provider ARP Digital has secured a Broker-Dealer license from Dubai's Virtual Assets Regulatory Authority (VARA). The authorization allows the firm to provide regulated conversion services between digital assets, stablecoins, and the UAE dirham (AED).
Under the new license, ARP Digital will facilitate the movement of capital for corporates, qualified investors, and capital markets participants. This expansion follows the firm's established presence in Bahrain, where it holds a Category 3 Capital Markets Crypto Assets Service Provider license from the Central Bank of Bahrain. In its Bahraini operations, the company has processed more than $3.5 billion in volume for over 450 institutional and corporate counterparties, reporting a fourfold year-over-year growth in 2025.
The Push for Regulated Infrastructure
Dubai has aggressively positioned itself as a global hub for virtual assets since the creation of VARA in 2022. This strategic shift comes amid a surge in institutional demand for compliant on-ramps and off-ramps, as professional investors seek secure ways to transition digital wealth into local assets.
According to Co-Founder Abdulla Kanoo, the regulated infrastructure required to deploy digital asset capital at scale had previously been nonexistent. By bridging the gap between digital asset capital and traditional UAE investments, ARP Digital aims to fill this structural void in the Gulf Cooperation Council (GCC) region.
Impact on Institutional Liquidity
The addition of regulated broker-dealers increases execution capacity and liquidity pathways for institutional investors within the UAE. By providing a compliant gateway for stablecoin-to-fiat conversions, the firm reduces operational friction for capital markets players and corporate entities.
This development signals a maturing of the regulated crypto infrastructure across the GCC. Co-Founder Abdulaziz Kanoo stated that securing the license is a "defining milestone" for the business, reinforcing the company's commitment to a compliance-first approach in a region increasingly focused on legal clarity for virtual assets.
Future Outlook
As ARP Digital integrates its Dubai operations with its existing Bahraini footprint, the firm is positioned to capture growing institutional interest in the UAE. Market observers will be watching to see if this expansion triggers further movement from other GCC-based providers seeking to unify their regulatory standing across the region. While the firm has established a strong track record in Bahrain, its ability to scale these services within the competitive Dubai ecosystem remains the primary focus for its next phase of growth.