DK Bank receives ADGM approval for Abu Dhabi subsidiary

By Divya Shah

Why does it matter: For FinTechs, it signals growing opportunities in cross-border payments, digital banking infrastructure, wealth services and custody solutions, while reinforcing Abu Dhabi’s role as a launchpad for regional and international financial innovation.

Bhutan-based digital bank DK Bank received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), marking a significant step in its international expansion plans. 

The approval paves the way for DK Bank to establish a subsidiary in ADGM that will offer broking, custody, payments and advisory services. However, the entity will not be permitted to commence operations until it satisfies the conditions attached to the approval and secures a final Financial Services Permission (FSP) from the regulator. 

According to the bank, it is the first Bhutanese financial institution to obtain in-principle approval for a financial services presence outside Bhutan. 

Zheng Yudong, Group CEO of DK Bank, said the decision establishes a clear pathway for the bank to build a presence in one of the world’s leading international financial centres. 

Once fully licensed, the Abu Dhabi subsidiary is expected to serve as a gateway connecting Gelephu Mindfulness City (GMC) and the broader Bhutanese financial ecosystem with international investors and financial institutions. The bank views Abu Dhabi as a strategic hub linking the Middle East, Asia and global markets. 

The development follows closer regulatory cooperation between ADGM and GMC. In April 2025, the two authorities signed a memorandum of understanding focused on regulatory collaboration and information sharing. 

David Peters, Managing Director of the Gelephu Financial Services Office, said that the milestone demonstrates how institutions based in Bhutan and GMC can connect with global markets while maintaining strong regulatory standards. 

Also known as Digital Kidu, DK Bank is the official bank of Gelephu Mindfulness City, a special administrative region in southern Bhutan, and has been positioning itself as a digital-first financial institution supporting the region’s international ambitions.