As digital assets surge in popularity, Tungsten Custody Solutions Ltd is stepping up to meet the demand for secure, regulated storage in the Gulf region.

Licensed by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), Tungsten aims to set the standard for institutional-grade digital asset custody, offering a fortress for blockchain-based holdings amid a rising tide of cyber threats and regulatory scrutiny.

José J. Pérez Aguinaga, Senior Executive Officer at Tungsten, sat down with The Byteline to break down the company’s mission, the UAE’s growing role as a digital finance hub, and what’s next for the fast-evolving custody landscape.

Q: Can you tell us about your background and what led you to the world of digital asset custody?

A: I have spent my career at the intersection of technology, finance, and digital assets, focusing on secure systems architecture, decentralized finance, and blockchain security.  

My background spans roles in traditional financial institutions and emerging fintech sectors, where I developed solutions for financial security.  

My experience with institutional adoption of digital assets made me acutely aware of the lack of compliant, enterprise-grade custody solutions, particularly in emerging markets like the UAE.  

This realization led me to focus on building secure, regulated infrastructure for digital asset storage, ensuring that institutions can safeguard their holdings with confidence.

Q: What inspired the creation of Tungsten Custody Solutions, and how does it differentiate itself from other digital asset custodians?

A: The motivation behind Tungsten was clear: to establish an institutional-grade, fully regulated digital asset custodian in the UAE that meets the highest security and compliance standards.  

Many custody solutions in the market are either exchange-linked, exposing clients to counterparty risks, or lack the necessary regulatory oversight to ensure long-term security and compliance.  

Tungsten is regulated by the FSRA in ADGM, meaning clients’ assets are segregated, protected, and secured under robust governance frameworks.  

Unlike other custodians, we also focus on cutting-edge security measures, including multi-signature approvals, Hardware Security Modules (HSMs), and institutional insurance coverage, ensuring an unparalleled level of protection for digital assets.

Digital Asset Custody & Security

Q: Why is secure custody so critical in today’s digital asset space, and what risks do investors face with self-custody?

A: The digital asset market has matured significantly, but security risks remain one of the biggest concerns for institutions and individual investors.  

Self-custody requires users to safeguard private keys, which, if lost or stolen, results in irreversible asset loss.  

Furthermore, self-custody does not provide the same regulatory protections, insurance coverage, or operational security that a qualified custodian can offer.  

Secure custody ensures that assets are stored in an institutional-grade environment, protecting them from cyber threats, physical risks, and operational errors.

Q: Tungsten is a sovereign qualified digital assets custodian—what does this mean, and how does it enhance security for clients?

A: Being a sovereign qualified custodian means that Tungsten operates under the full regulatory oversight of ADGM’s FSRA, ensuring compliance with global financial security standards.  

This provides clients with legal protections, regulatory transparency, and an institutionally recognized framework for asset security.  

It also means that Tungsten’s risk management, governance structures, and compliance measures align with the highest international standards, giving investors confidence that their assets are protected against internal mismanagement, external threats, and regulatory uncertainties.

Q: What are some of the biggest misconceptions people have about digital asset custody?

A: One major misconception is that custody is only for large financial institutions—in reality, any investor or corporate entity with significant digital assets benefits from institutional-grade security and regulatory protection.  

Some believe that cold storage is the only security measure needed, but a holistic approach involving multi-layered encryption, access controls, and regulatory oversight is essential for long-term asset security.

Regulation & Compliance

Q: Tungsten is licensed and regulated in the UAE. Can you walk us through the regulatory landscape for digital asset custodians in the region?

A: The UAE has established itself as a global leader in digital asset regulation, with FSRA (ADGM) and VARA (Dubai) setting clear frameworks for custodians, exchanges, and other VASPs (Virtual Asset Services Providers).  

FSRA, under which Tungsten is licensed, provides one of the most comprehensive custody regulations globally, ensuring that all licensed custodians adhere to strict AML/CFT requirements, operational security standards, and risk management frameworks.  

The UAE’s regulatory approach is proactive and aligned with international financial standards, making it an ideal hub for institutional-grade digital asset custody.

Q: How does Tungsten ensure compliance while maintaining the flexibility digital asset investors need?

A: Tungsten has built a compliance-first framework that aligns with institutional expectations while ensuring clients can access their assets securely and efficiently.  

We implement risk-based controls, real-time transaction monitoring, and compliance automation, allowing us to meet regulatory obligations without disrupting the client experience.  

Our infrastructure is designed to integrate seamlessly with institutional finance, ensuring that investors have the flexibility they need while maintaining full regulatory adherence.

Q: With increasing global regulations, do you see the UAE becoming a key hub for regulated digital asset custody?

A: Absolutely. The UAE has already established itself as a digital asset hub, and with more institutional players entering the market, the need for regulated, secure custody solutions will continue to grow.  

The FSRA and VARA frameworks are setting global benchmarks for compliance and investor protection, attracting institutional investors, hedge funds, and financial firms looking for secure and transparent digital asset custody services.

Market Trends & Institutional Adoption

Q: How has the demand for institutional-grade digital asset custody evolved in the UAE and the GCC region?

A: Demand has surged as institutional investors, asset managers, and corporations seek compliant ways to store and manage digital assets.  

With the introduction of regulated exchanges and trading platforms, the need for secure, segregated, and compliant custody solutions has become a top priority.

Q: What are the key trends you’re seeing in digital asset security and institutional adoption?

A: We are seeing a shift towards regulatory compliance, institutional staking solutions, and greater integration between traditional finance and digital assets.  

Staking is becoming a key focus for institutional investors, as is ensuring secure, compliant access to digital assets through custody services.

Q: Do you foresee traditional financial institutions integrating more with digital asset custodians like Tungsten?

A: Yes, we are already witnessing banks and financial institutions partnering with regulated custodians to facilitate their entry into digital assets.  

As regulatory clarity improves, more traditional firms will leverage custodians like Tungsten to bridge the gap between traditional and digital finance.

Risk & Future of Custody Solutions

Q: What are some of the most common security threats facing digital assets today, and how does Tungsten mitigate them?

A: Threats include cyberattacks, phishing attempts, private key mismanagement, and smart contract vulnerabilities.  

Tungsten mitigates these risks through air-gapped cold storage, multi-signature authentication, and continuous transaction monitoring.

Q: Where do you see the future of digital asset custody heading in the next five years?

A: Custody will move beyond just secure storage—staking, tokenized assets, and institutional lending will become integrated within custody solutions.  

Regulatory standards will continue evolving, and custodians like Tungsten will play a critical role in institutional adoption.

Q: As AI and automation grow in financial services, how do you see them impacting digital asset custody?

A: AI will enhance risk monitoring, transaction analytics, and fraud detection, improving compliance and security.  

However, human oversight will remain essential to ensure regulatory adherence and governance.

Q: What’s next for Tungsten Custody Solutions, and how do you plan to expand your services in the region?

A: We are expanding our offerings to include staking, on and off-ramping, and enhanced institutional integrations.  

Our goal is to lead the UAE’s digital asset custody sector while driving global institutional adoption.