Dubai Taps Crypto.com to Power Government Transactions with Crypto

The initiative was formalized during the Dubai Fintech Summit, and it allows residents and businesses to possibly use stablecoins for government transactions, which will be converted to dirhams before being deposited into state accounts. In the US, Coinbase is set to join the S&P 500, thanks to growing mainstream acceptance of crypto. Despite considering a Bitcoin-heavy treasury strategy like Michael Saylor’s, Coinbase opted for a more risk-conscious approach. It still holds nearly 9,500 BTC and is expanding through a $2.9 billion acquisition of crypto derivatives exchange Deribit. Dubai Moves Closer to Cashless Future with Crypto.com Dubai recently took a major step toward becoming a fully digital economy by partnering with crypto exchange Crypto.com to use cryptocurrency payments for government services. The agreement was signed during the Dubai Fintech Summit on May 12 and is a key part of the city’s “cashless strategy,” which aims to transition Dubai into a completely digital and cashless society. (Source: Government of Dubai ) According to the Dubai Department of Finance (DOF), the initiative will introduce a new digital payment channel across all official government platforms. Once operational, residents and businesses will be able to pay for government services using cryptocurrencies through Crypto.com’s digital wallet infrastructure. These crypto payments will be converted into UAE dirhams before being deposited into DOF accounts. While the specific cryptocurrencies accepted have not been named, the DOF explained that the system will support “stable cryptocurrencies,” which indicates that stablecoins like USDT or USDC may be among the accepted options. This comes at a time when Abu Dhabi’s sovereign wealth fund and other local institutions announced the upcoming launch of a dirham-pegged stablecoin . Dubai’s cashless strategy was first introduced in October of 2024, and by that time, 97% of government-related payments were already digital. The goal now is to have 90% of all financial transactions—across both the public and private sectors—occur through cashless methods by 2026. This digital push is expected to add at least 8 billion dirhams ,or approximately $2.1 billion, to Dubai’s economy, driven by fintech development and expanding digital service offerings. The government is also in the process of developing a regulatory framework that is designed to support financial innovation while maintaining robust security and efficiency standards. As part of its broader digital ambitions, Dubai also piloted a project to tokenize real estate on the blockchain to help cement its status as a crypto-friendly city. Some other jurisdictions, including New York State, are also exploring the use of cryptocurrency for public payments. Coinbase to Make S&P 500 Debut Other crypto exchanges are also making big moves. In fact, Coinbase is set to make history as the first cryptocurrency company to be included in the Standard and Poor’s 500 (S&P 500) index. The announcement was made on May 12 by S&P Global, which confirmed that Coinbase will officially join the index on May 19, replacing Discover Financial Services. Discover was recently acquired by Capital One Financial Corp, opening the door for the crypto exchange to take its place in the prestigious index. The S&P 500 is one of the most widely tracked benchmarks in the financial world, and it represents 500 of the largest publicly traded companies in the United States. As a market-cap-weighted index, it gives greater influence to firms with larger valuations like Microsoft and Apple. While Coinbase will likely be among the bottom 400 companies in terms of weight, it will still benefit from automatic buying by index funds and exchange-traded funds that replicate the S&P 500. This mechanical demand already started to impact Coinbase’s stock price, which jumped 10.94% in after-hours trading to $229.9, according to Google Finance . The firm’s market cap also rose to $52.8 billion, capping off a 4% gain earlier in the day. Coinbase stock price (Source: Google Finance ) Coinbase chief financial officer Alesia Haas called the inclusion a major milestone, not only for the company but for the broader cryptocurrency industry, because iit signals growing mainstream acceptance. The crypto exchange now joins other Bitcoin-exposed companies in the index, like Tesla and Block Inc., both of which have made large investments in digital assets. While Coinbase now meets the requirements for inclusion, other crypto-focused firms are still on the sidelines. Strategy , which is very well known for aggressively acquiring Bitcoin, was considered a potential S&P 500 candidate but reported a $4.2 billion net loss in Q1 2025 . This disqualified it under the index’s profitability requirement. Despite this, Strategy does meet other criteria like being listed on a major US exchange, generating a majority of its revenue domestically, and having a market cap above $18 billion. Overall, Coinbase’s successful entry is a huge moment for crypto in traditional finance. Coinbase Passes on All In Bitcoin Bet Coinbase CEO Brian Armstrong revealed that the company actually considered adopting a Bitcoin-heavy investment strategy similar to that of Michael Saylor’s Strategy on multiple occasions over the past 12 years but ultimately decided against it. In a May 9 video call with Bloomberg, Armstrong said that the idea of allocating a large portion of Coinbase’s balance sheet into Bitcoin was discussed internally. However, the company opted for a more cautious path, due to concerns that such a move could compromise its cash position and jeopardize the exchange’s core business. Armstrong explained that the decision was based on a conscious assessment of risk. Alesia Haas added that the firm also wanted to avoid appearing as if it were in direct competition with its own customers by placing heavy bets on specific cryptocurrencies. Nonetheless, Coinbase still has several crypto positions, and recently acquired an additional $153 million worth of digital assets, primarily Bitcoin, according to its first-quarter earnings report. Currently, the firm holds 9,480 BTC, which is valued at approximately $988 million, making it the ninth-largest corporate holder of Bitcoin according to BitcoinTreasuries.net . (Source: BitcoinTreasuries.net ) While Coinbase took a conservative approach compared to firms like Strategy, the broader trend of institutional Bitcoin adoption continues. Over 100 public companies, 40 ETF issuers, 26 private firms, and 12 governments worldwide have reported holding Bitcoin . In addition to its investment strategy, Coinbase is expanding its presence in the crypto derivatives market through a landmark acquisition. On May 8, the company announced a $2.9 billion agreement to acquire Deribit , one of the largest crypto derivatives platforms globally. The acquisition is the biggest corporate deal in the crypto sector to date and is expected to greatly enhance Coinbase’s reach in the derivatives market, where it previously operated mainly through its Bermuda-based platform. Deribit facilitated over $1 trillion in trading volume in 2024 and currently has around $30 billion in open interest. Source: https://coinpaper.com/9051/dubai-taps-crypto-com-to-power-government-transactions-with-crypto