Fuze, a digital assets infrastructure firm, has raised US$12.2 million in a series A funding round.

The round was led by Galaxy, a digital assets company, and UAE-based telecommunications firm e& Capital (Etisalat).

Founded in 2023, Fuze offers Digital Assets-as-a-Service and recently expanded into payments.

Operating in the Middle East and North Africa (MENA) region and Turkey, Fuze has processed over US$2 billion in digital asset volume.

The funding will help expand into new markets, develop products, and support regulatory compliance.

🔗 Source: Fuze

🧠 Food for thought

1️⃣ The shifting digital assets infrastructure landscape

Fuze’s substantial $12.2 million Series A funding highlights how digital asset infrastructure is rapidly maturing beyond speculation toward institutional adoption.

The company’s focus on regulated “Digital Assets-as-a-Service” infrastructure follows a broader industry trend, with at least 12 comparable infrastructure providers founded between 2018-2023 securing significant funding 1.

Processing over $2 billion in digital asset volume since launching in 2023 demonstrates exceptional velocity compared to industry peers, who typically require several years to reach similar transaction volumes 2.

The timing coincides with institutional appetite shifting from direct crypto exposure toward infrastructure that enables regulated digital asset offerings, as evidenced by growing Wall Street participation and investments from telecommunications giants like e& 3.

Infrastructure providers are increasingly emphasizing regulatory compliance as a competitive advantage, with Fuze’s approach mirroring successful models like OSL, which built a global regulated platform serving institutional investors across multiple jurisdictions 3.

2️⃣ India’s regulatory evolution creates strategic entry opportunity

Fuze’s expansion plans into India come at a pivotal moment in the country’s digital asset regulatory journey, which has evolved from the Reserve Bank of India’s outright ban in 2018 to a more nuanced approach following the Supreme Court’s 2020 intervention 4.

The inclusion of virtual digital assets under India’s Prevention of Money Laundering Act in 2023 signaled the government’s shift from prohibition to regulation, requiring exchanges to implement KYC, transaction monitoring, and suspicious activity reporting 5.