How Startale Group Is Quietly Rewiring Asia’s Tokenized Finance Through Abu Dhabi
When a Japan-built blockchain company chooses Abu Dhabi as its next base, is it chasing a license, or following where the institutional money is already sitting? That is the question raised by Startale Group’s selection into Hub71’s Cohort 18 under the Abu Dhabi Digital Assets program, backed by Mubadala and the Abu Dhabi Department of Economic Development. Startale was picked from over 2,400 global applicants, and will set up inside the Abu Dhabi Global Market (ADGM), the financial free zone that has spent the last seven years building a rulebook specifically for digital assets.
Why Abu Dhabi, and why now
The ADGM digital asset framework was first introduced in 2018 and has since expanded to cover spot crypto markets, custody, fiat-referenced tokens, and digital securities. In December 2025, its regulator, the FSRA, approved Binance under a global license framework, a first of its kind. For a builder of tokenized securities rails, that precedent matters, because regulatory clarity is the single thing that moves institutional capital onchain.
The timing tracks with where the tokenization market is actually growing. According to RWA.xyz data cited in the Q1 2026 RWA Tokenization Market Report, the onchain value of tokenized real-world assets, excluding stablecoins, grew from roughly $21 billion at the start of 2026 to about $27.5 billion by the end of Q1, a 30 percent increase in three months. Tokenized US Treasuries crossed $10 billion in late February and reached $13.4 billion by early April.
Abu Dhabi is positioning itself to capture a share of that flow. Hub71 is backed by Mubadala Investment Company, which makes the cohort less a startup program and more a sovereign-aligned funnel for digital asset firms. Selection of 27 companies out of 2,400 applications sets the filter at roughly 1.1 percent.
Reading the capital trail
Startale’s Abu Dhabi move comes about four weeks after it closed a $63 million Series A, led by a $50 million second tranche from SBI Group and a $13 million first tranche from Sony Innovation Fund. That capital does not sit neutrally. SBI is one of Japan’s largest financial conglomerates, with over 80 million customers, and Sony brings a global distribution footprint through its joint venture with Startale on Soneium, an Ethereum Layer 2 network.
The pattern that emerges is a vertical stack. Startale operates Astar Network, co-develops Soneium with Sony, is building Strium with SBI for tokenized securities, issues two stablecoins (JPYSC for yen, USDSC for dollars), and runs the Startale App as a consumer front end. The Abu Dhabi entity gives that stack an institutional front door that sits outside Japan’s domestic regulatory perimeter.
Sota Watanabe, CEO of Startale Group, explains,
Hub71 and Abu Dhabi Global Market provide the regulatory clarity and global reach we need to scale Startale’s ecosystem responsibly, Abu Dhabi is becoming a key hub for digital assets, and joining this cohort positions us to expand across Eastern and Western markets, working closely with regulators and institutional partners.
For readers less familiar with the terminology: a Layer 1 is a base blockchain like Ethereum. A Layer 2 is built on top for speed and cost. A tokenized security is a traditional asset like a bond or share issued as a blockchain token. A stablecoin is a token pegged 1:1 to a currency. Startale is building pieces across all of those categories.
What Startale plans to build inside ADGM
Under the Hub71+ Digital Assets program, Startale plans to extend three tracks from Abu Dhabi: blockchain infrastructure through Soneium and Strium, consumer access through the Startale App, and stablecoins through USDSC and JPYSC. The stated rationale is cross-border reach.
Hub71’s side of the message is structural rather than promotional.
We are pleased to welcome Startale Group into Hub71’s Cohort 18. Their focus on digital asset infrastructure reflects the strength of our specialist ecosystems and the calibre of founders choosing Abu Dhabi as a launchpad for global growth. We look forward to supporting their expansion.
said Divya Claudia Nair, Startup Journey Lead at Hub71.
Final thoughts
Startale’s Abu Dhabi entry is best read as a signal. The questions worth watching are whether Strium’s tokenized securities flow routes settlement through ADGM entities, whether JPYSC and USDSC find regulated distribution via UAE banks, and how quickly Cohort 18 becomes a working corridor between Japanese infrastructure and Gulf capital.
If that corridor forms, the consequence is that Abu Dhabi stops being a second stop on an expansion map and becomes a primary settlement venue for Asia’s onchain capital markets. For builders, issuers, and allocators tracking where tokenized finance actually clears, that is the story behind the story.
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