Binance has secured permission from Abu Dhabi Global Markets (ADGM), Abu Dhabi’s special economic zone for finance, to operate under a comprehensive exchange, clearing and brokerage framework, according to a Binance press release.
The approval splits Binance’s business into three regulated components that mirror a traditional market stack in a traditional financial exchange. Binance’s ADGM presence will be organized under three locally incorporated entities branded as Nest, a legal requirement that allows the Financial Services Regulatory Authority to oversee each function separately.
Nest Exchange has been licensed as a recognized investment exchange to conduct spot and derivatives trading. Nest Clearing and Custody has been approved as a recognized clearing house with additional depository and CSD licences, giving the regulator oversight of clearing, settlement and asset protection. Nest Trading has been approved as a broker-dealer covering off-exchange and OTC activity.
Although structured under the Nest brand, all three entities are controlled by Binance and serve as the licensed infrastructure through which Binance.com will operate in Abu Dhabi, aligning the platform with the market structure standards regulators are pushing global exchanges to adopt.
Richard Teng, Binance’s co-CEO, said the framework reflects a commitment to “compliance, transparency and user protection,” while His Excellency Ahmed Jasim Al Zaabi, ADGM’s chairman, said Binance’s arrival underscores Abu Dhabi’s role as a “leading international hub for innovation, sustainable growth and the finance of the future.”
Binance and ADGM did not respond to a CoinDesk request for comment on the possibility of moving its global headquarters to Abu Dhabi.
Binance has been searching for a jurisdiction to call home for some time, with Teng telling CoinDesk in 2024 that the process would take some time and that the company needed to be “thoughtful” about it.
