Key facts
- VARA and Securitize signed an MoU to advance tokenization in Dubai and the UAE.
- The agreement aims to foster institutional participation and strengthen Dubai's digital asset ecosystem.
- The collaboration will explore regulatory frameworks for tokenized financial products.
- Securitize is the world's largest tokenization platform with $4.9 billion in AUM.
- The total value of tokenized assets globally rose 2% to $38.5 billion in the past month.
Dubai's Virtual Assets Regulatory Authority (VARA) and Securitize, a tokenization platform backed by BlackRock, have signed a Memorandum of Understanding (MoU) to advance tokenization and digital asset infrastructure within the United Arab Emirates and Dubai. The agreement establishes a collaborative framework aimed at supporting regulated tokenization initiatives, encouraging institutional involvement, and bolstering Dubai's digital asset ecosystem.
Through this partnership, VARA and Securitize intend to support tokenization projects in Dubai, including those initiated by VARA, to attract talent and explore the operational aspects of tokenized financial products within Dubai's regulatory landscape. This move aligns with a broader trend of tokenization gaining momentum in financial technology hubs globally, with recent reports indicating the London Stock Exchange's potential partnership with Kraken for tokenized stock trading.
Securitize CEO Carlos Domingo described Dubai as a leading jurisdiction for digital asset innovation, emphasizing the importance of regulatory collaboration as tokenization transitions into mainstream financial infrastructure. VARA has previously issued its 50th virtual asset service provider license to Tribe Tokenisation FZE, another tokenization platform.
A VARA spokesperson clarified that the MoU's primary objective is to create a broad collaborative framework between VARA and Securitize, rather than to define a specific technological stack or product. The intention is to combine VARA's regulatory insights with Securitize's institutional tokenization experience to foster trusted, regulated tokenized markets in Dubai. No specific projects are slated for announcement at this initial stage.
The announcement comes amid growing investor interest in tokenized assets. Data from RWA.xyz indicates a 103% increase in total RWA holders over the past 30 days, reaching 3.2 million. During the same period, the total value of tokenized assets saw a 2% rise to $38.5 billion. Securitize currently manages $4.9 billion in tokenized assets, positioning it as the world's largest platform in this sector.