Dubai's VARA Partners with Securitize Through MoU to Advance Asset Tokenization
A Memorandum of Understanding between VARA and Securitize aims to promote tokenization development in Dubai while examining regulatory frameworks for tokenized financial products in the area.
The Virtual Assets Regulatory Authority (VARA) of Dubai has entered into a Memorandum of Understanding (MoU) with Securitize, a tokenization platform supported by BlackRock, to push forward tokenization capabilities and digital asset infrastructure throughout Dubai and the United Arab Emirates.
According to a Thursday announcement provided to Cointelegraph, the MoU aims to create a collaborative structure that will bolster regulated tokenization projects, encourage institutional involvement, and enhance Dubai's digital asset environment.
The partnership between VARA and Securitize is designed to bolster tokenization projects within Dubai, encompassing VARA-initiated programs, with the goal of drawing additional talent to the region and examining the operational requirements for tokenized financial products within Dubai's existing regulatory structure.
Other jurisdictions focused on financial technology are also seeing growing interest in tokenization projects. Just days before this announcement, reports emerged that the London Stock Exchange had formed a partnership with cryptocurrency exchange Kraken to introduce tokenized stock trading on its after-hours trading platform, enabling 24/5 trading capabilities.
Tokenization is evolving into "mainstream" financial infrastructure: Securitize CEO
Carlos Domingo, co-founder and CEO of Securitize, characterized Dubai as among the "world's most forward-looking jurisdictions for digital asset innovation," highlighting the critical importance of working alongside regulators as tokenization transitions from "concept to mainstream financial infrastructure."
In early July, VARA issued its 50th virtual asset service provider (VASP) license, awarding it to tokenization platform Tribe Tokenisation FZE.
In response to questions regarding specific infrastructure objectives, a VARA spokesperson explained to Cointelegraph that the primary objective of the MoU is to establish an extensive framework for cooperation between the two organizations, as opposed to focusing on a particular technological stack or product. She told Cointelegraph:
"The intention is to combine VARA's regulatory perspective with Securitize's experience in institutional tokenisation to identify where collaboration can help support the development of trusted, regulated tokenised markets in Dubai."
The spokesperson further noted that no specific projects will be announced "at this stage" under the MoU, though the agreement establishes a collaborative framework designed to "support relevant tokenisation initiatives in Dubai."
This announcement comes amid growing investor appetite for tokenized assets, which has resulted in total RWA holders climbing 103% over the past 30 days to reach 3.2 million. During the same timeframe, the aggregate value of tokenized assets increased by 2% to $38.5 billion, based on data from provider RWA.xyz.
With $4.9 billion in tokenized assets under management (AUM), Securitize holds the position as the world's largest tokenization platform. Ondo Finance occupies the second position with $3.5 billion.