Banks are moving into crypto. Do exchanges still matter?

Dubai: As traditional banks move deeper into cryptocurrency, the relationship between conventional finance and digital assets is entering a new phase. Edwin Cheung, Executive Director of Gate, a cryptocurrency exchange, discusses what this shift means for investors, why banks and crypto exchanges could increasingly work together, and how the UAE’s digital-asset market could evolve. What makes the UAE an increasingly attractive market for global and regional banks seeking to offer cryptocurrency investment services? Edwin Cheung: The UAE stands out globally because of a powerful alignment of three structural factors. You have dedicated regulatory frameworks that give banks complete clarity before entering the market. You have an international client base characterised by sophisticated cross-border needs and high native crypto adoption. And, crucially, you have a clear, top-down government mandate to build a global digital-asset hub. When rules, demand and policy direction all point in the same direction, financial institutions have every reason to move decisively. What does the entry of established banks into cryptocurrency trading mean for the broader acceptance of digital assets within the UAE’s financial system? Edwin Cheung: When established banks begin offering crypto trading, it fundamentally normalises digital assets as a core pillar of modern wealth management rather than a parallel universe. Banks bring institutional trust, strict compliance and battle-tested custody practices that give confidence to both risk-averse investors and regulators alike. Acceptance isn’t achieved overnight, but bank participation pulls digital assets from the edge of the financial system straight to the centre. At Gate, we operationalise this shift daily through advanced off-exchange settlement: our institutional partners keep their assets safely with their preferred banking networks while seamlessly tapping into our deep liquidity and 24/7 markets. To what extent could access through a familiar banking relationship attract UAE investors who have previously been reluctant to use dedicated crypto platforms, and what barriers are likely to remain? Edwin Cheung: A familiar banking relationship removes the biggest hurdle for hesitant investors: trust. Funding from an account they already use, with a banker they already know, turns crypto from something intimidating into something familiar. We expect that to bring a meaningful new wave of UAE investors into the market. But barriers will remain. Banks will naturally offer a narrower range of assets and set their own trading hours and fees, while investors who want broader token choice, round-the-clock execution and newer products will still look beyond that. Education on risk matters in every channel. From an investor’s perspective, what are the most important differences between buying digital assets through a bank, using a regulated crypto exchange and holding them through self-custody? Edwin Cheung: It comes down to convenience, choice and control. A bank gives you familiarity: your assets sit within a relationship you already trust, though the range of assets and trading hours are typically narrower. A regulated exchange gives you breadth: more assets, deeper liquidity and 24/7 trading, with custody under licence conditions and transparency measures such as proof of reserves. Self-custody gives you total control and total responsibility. Lose your keys and there is nobody to call. None of the three is right for everyone. It depends on the investor’s experience, size and priorities. As banks expand their digital-asset offerings, how do you expect the relationship between banks and crypto exchanges to evolve: towards direct competition, greater collaboration or a clearer division of roles? Edwin Cheung: Towards collaboration and a clearer division of roles, with competition only at the edges. Banks are strongest in custody, fiat and client trust. Exchanges are strongest in liquidity, market access and the speed of product innovation. Each side has what the other cannot easily build, and the winners will be the ones who connect the two rather than try to replace the other. What are Gate Dubai’s main strategic priorities in the UAE, and which customer segments, retail, qualified or institutional investors, offer the strongest opportunities for growth? Edwin Cheung: Our primary strategic priority in the UAE is compliance first, operating under a VASP licence from Dubai's VARA to carry out exchange services entirely within that framework. We are building a local presence that combines Gate’s global experience with a deep understanding of how clients in the region trade and move money. While our licence permits us to serve institutional, qualified and retail investors, we see the strongest growth opportunities with institutions and qualified investors, where custody, settlement and counterparty protection matter most, alongside rising retail demand from users who want to move bet