Dubai’s Virtual Assets Regulatory Authority (VARA) and securitize, a tokenization platform backed by BlackRock, have signed a Memorandum of Understanding (MoU) to support tokenization and digital asset development in Dubai and the United Arab Emirates.
The agreement aims to create a framework for the two sides to work together on regulated tokenization projects, encourage more participation from institutions, and support the development of Dubai’s digital asset market.
VARA and Securitize Working Together
Under the MoU, VARA and Securitize will work together to support tokenization initiatives in Dubai, including projects started or facilitated by VARA. They will also explore how tokenized financial products can operate under Dubai’s regulatory framework.
The agreement does not focus on creating one specific technology or product. Instead, the main goal is to create a broader framework where both sides can work together.
VARA can provide its regulatory perspective, while Securitize can provide its experience in institutional tokenization. Through this cooperation, the two sides can identify areas where they can help develop trusted and regulated tokenized markets in Dubai.
The agreement also aims to attract more talent and support the growth of Dubai’s digital asset ecosystem. This shows how regulators and companies are working together as tokenization becomes a growing part of the financial sector.
Tokenization in Mainstream Finance
Carlos Domingo, Securitize’s co-founder and CEO, described Dubai as one of the world’s most forward-looking jurisdictions for digital asset innovation.
Domingo also highlighted the importance of working with regulators as tokenization moves from a concept toward becoming part of mainstream financial infrastructure.
Tokenization refers to representing assets through digital tokens. As interest in tokenized assets continues to grow, regulators are also looking at how these products should be managed and regulated.
This development is not exclusive to Dubai. Other financial markets are also exploring tokenized assets.
According to reports, the London Stock Exchange had partnered with crypto exchange Kraken to launch tokenized stock trading on its night-time trading venue, allowing trading 24 hours a day, five days a week.
Dubai has also continued to develop its virtual asset sector. In July, VARA granted its 50th virtual asset service provider license to tokenization platform Tribe Tokenisation FZE.
Demand for Tokenized Assets
The MoU comes as demand for tokenized assets continues to increase. According to reports, the total number of real-world assets (RWA) holders increased by 103% over the past 30 days to 3.2 million.
The total value of tokenized assets also increased by 2% during the same period, reaching $38.5 billion.
Securitize was also described as the world’s largest tokenization platform, with $4.9 billion in tokenized assets under management. Ondo Finance ranked second with $3.5 billion.
The agreement between VARA and Securitize will focus on how tokenization can continue to develop while operating within a regulated environment. Rather than announcing a specific new product, the MoU creates a framework for cooperation between the regulator and the tokenization platform as Dubai continues to develop its digital asset market.
