Dubai’s Virtual Assets Regulatory Authority (VARA) and BlackRock-backed tokenization platform Securitize have signed a Memorandum of Understanding (MoU) to support the next stage of tokenization growth in Dubai and across the United Arab Emirates. The agreement is designed to create a formal structure for cooperation between the emirate’s lead virtual asset regulator and one of the best-known infrastructure providers in the tokenized finance sector.
The MoU was announced on Thursday. The two groups said it will help advance regulated tokenization initiatives, attract institutional participation and strengthen the wider digital asset ecosystem in Dubai. Tokenization allows real-world assets such as private equity, real estate, credit, bonds and funds to be represented on blockchain-based ledgers.
This transformation has drawn increasing interest from global banks, asset managers and market infrastructure providers because digital tokens can make traditionally illiquid assets easier to trade or use inside financial applications. It has also prompted regulators in many countries to build licensing frameworks and market rules for digital assets and tokenized securities.
Dubai has been among the more active regulators in this field. VARA was established under Dubai Law No. 4 of 2022 to oversee virtual asset regulation and supervision. Since then, the authority has issued licenses to exchanges, custody providers, broker-dealers and other entities working in the digital asset economy.
At the beginning of July, VARA granted its 50th virtual asset service provider license to tokenization platform Tribe Tokenisation FZE. That milestone highlighted the fast-growing number of regulated tokenization businesses in Dubai and the authority’s willingness to bring tokenized markets inside its licensing perimeter.
Scope of the Securitize agreement
According to the announcement, the MoU is not tied to a specific product or technological stack. Rather, it sets up a broad framework under which VARA and Securitize can collaborate on tokenization-related projects, including initiatives originating from VARA. The two parties also intend to explore how tokenized financial products should be supervised and governed in Dubai’s regulatory environment.
Both organizations said the agreement could be used to examine legal, operational and market assumptions for tokenization in the UAE. That work may involve identifying which asset classes are best suited to tokenization, how ownership rights should be represented on-chain, and how existing disclosure and conduct rules should adapt to fully digital instruments.
In a statement, a spokesperson for VARA said the agreement’s main goal is to create a broad collaboration framework rather than to choose a particular technical solution. The spokesperson added that the intention is to combine VARA’s regulatory perspective with Securitize’s institutional tokenization experience to support trusted, regulated tokenized markets in Dubai. No specific projects were announced at this stage.
Tokenization activity is moving beyond pilot phase
The Dubai agreement comes as tokenization gains ground in established financial centers. Data provider RWA.xyz said total holders of tokenized real-world assets increased 103% in the 30 days before the announcement, reaching 3.2 million globally. The total value of tokenized assets rose about 2% to $38.5 billion over the same period.
Securitize ranks as the largest tokenization platform in the world, with $4.9 billion in tokenized assets under management. Ondo Finance ranks second with roughly $3.5 billion. Those figures remain small compared with traditional market size, yet the growth in token holders shows that this is no longer only an infrastructure experiment.
The widening ecosystem is not limited to crypto companies. The London Stock Exchange was recently reported to be partnering with crypto exchange Kraken to launch tokenized stock trading on its night-time venue. If completed, that marketplace would let investors trade tokenized equities outside traditional opening hours and is another sign that regulated exchange operators are taking tokenization seriously.
BlackRock-backed Securitize and the institutional shift
Securitize’s role in the agreement reflects the growing involvement of traditional finance in digital asset infrastructure. The company has worked with large asset managers on tokenized capital-market products and has become one of the most visible infrastructure providers for regulated on-chain securities. Its close association with BlackRock has strengthened its market position, and the MoU now gives it a formal channel into Dubai’s regulatory process.
Carlos Domingo, co-founder and chief executive officer of Securitize, said Dubai has become one of the world’s most forward-looking jurisdictions for digital asset innovation. He also underscored the importance of working with regulators as tokenization moves from concept into mainstream financial infrastructure.
Those comments point to a broader industry view. Many participants believe tokenized securities cannot achieve scale unless issuers understand exactly how national regulators will treat them. VARA’s decision to sign a memorandum with a major tokenization provider sends a signal that the authority wants a practical understanding of the technology rather than a distant, top-down rule. For Securitize, the agreement provides an opportunity to help shape the policy environment in a region that is actively courting digital asset companies.
What the MoU could mean for Dubai
The partnership supports Dubai’s wider digital-economy plans. The emirate has established itself as a regional financial center with access to the Middle East, Africa and South Asia. By creating formal partnerships with industry players, VARA can learn about
Source: Cointelegraph News