Amid what it described as “challenging market conditions,” Abu Dhabi sovereign wealth fund Mubadala Investment Capital has just thrown its support behind an unlikely candidate: cryptocurrencies.
The company earlier this month announced it has invested through its ventures arm in MidChains, a crypto asset exchange that will launch operations in late 2019 in Abu Dhabi. The move comes as Mubadala boosts its investments into the technology sector where it sees strong opportunities.
The deal marks one of the first instances where Mubadala has invested directly into a digital asset company in the Middle East. It described the digital asset space as “one [to] watch,” saying that it believes MidChains has what it takes to succeed despite bumps in the road.
The founders of MidChains said they were in talks with Mubadala for about a year before they finalised the deal. While they did not disclose the value of the investment, they said it was a seven-figure number in US dollars.
“Mubadala has always been a pioneer in the technology space and wants to become a pioneer in investing in new technologies,” said Mohammad Al Hashemi, co-founder of MidChains.