Stacks DLT Plants Flag in UAE’s ADGM—Bitcoin Layer-2 Goes Regulatory Shopping

Stacks, the Bitcoin Layer-2 protocol, just parked its foundation in Abu Dhabi Global Market (ADGM)—because nothing screams ’decentralization’ like cozying up to a financial free zone. The move signals a play for Middle East institutional adoption, with ADGM’s sandbox-friendly regulators as the ultimate wingman.

Why it matters: While Ethereum L2s fight for scraps in the DeFi trenches, Stacks is betting big on Bitcoin’s institutional cred—and the UAE’s ’ask-forgiveness-not-permission’ regulatory vibe. Smart contracts meet oil money.

The punchline: Another crypto project sets up shop where the tax rates are low and the compliance officers pliable. At least they picked a jurisdiction that hasn’t banned Bitcoin... yet.

Stacks Foundation in ADGM will bridge Asia with MENA

Using ADGM as a hub, Stacks will bridge its presence in Hong Kong with the UAE. The Stacks Foundation will work with UAE local partners to launch educational programs for Bitcoin developers and users, support policy initiatives that advance Bitcoin DeFi, yields, and digital asset regulations, as well as foster collaboration between institutions, builders, and innovators.

With the launch of sBTC earlier this year, users can now access a 1:1 Bitcoin-backed, programmable asset for lending, trading, and more, without compromising Bitcoin’s security. The Stacks Asia Foundation will build on this by empowering builders, educating institutions, and creating pathways for Bitcoin-powered DeFi in both Asia and the Middle East.

As Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority, put it, “The Stacks Asia DLT Foundation’s registration in ADGM reinforces the UAE’s growing role in the digital asset space, paving the way for significant advancements in Bitcoin Layer-2 solutions and wider blockchain adoption across the Middle East.”

The DLT Foundation community has been growing in ADGM

In 2024, the TON Blockchain registered its DLT Foundation at ADGM in the UAE under ADGM’s DLT Foundations framework, as well as Japanese Bitgrit, and the Kaia DLT Foundation, which was formed through the merger of the Klaytn and Finschia blockchains initially developed by Kakao and LINE, respectively.

IOTA was also one of the first DLT Foundations to be registered in ADGM.

In November 2023, the Abu Dhabi Global market (ADGM) introduced the Distributed Ledger Technology (DLT) Foundations Regulations 2023, marking the world’s first legal framework for blockchain within its jurisdiction. They have been actively broadening their regulatory framework relating to digital assets and DLT, with the objective of establishing a comprehensive legal and regulatory structure for such businesses.

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