Dubai’s Virtual Assets Regulatory Authority (VARA) and tokenization firm Securitize have entered a Memorandum of Understanding (MoU) to promote tokenization and the development of digital asset infrastructure across Dubai and the wider United Arab Emirates.
New partnership to advance digital asset ecosystem
The agreement creates a framework for the two organizations to collaborate on regulated tokenization projects. VARA and Securitize intend to support institutional participation and strengthen Dubai’s position within the digital asset sector. The MoU was announced on Thursday.
VARA is the government authority regulating virtual assets in Dubai, aiming to provide clarity and security for digital asset activities. Securitize, backed by BlackRock, specializes in enabling the tokenization of real-world assets and digital securities, serving institutional clients globally.
According to both parties, the collaboration seeks to encourage more professionals to enter the industry and examine how tokenized financial products can operate under Dubai’s existing regulations. The MoU also covers support for projects initiated by VARA.
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Tokenization is rapidly becoming part of mainstream financial infrastructure, particularly in forward-looking jurisdictions such as Dubai, according to Securitize CEO Carlos Domingo, who emphasized the importance of regulatory partnerships as the industry evolves.
No specific projects have been announced under the alliance at this stage. VARA explained that the main purpose of the MoU is to create a broad collaboration framework without committing to a particular technology stack or product line at this time.
Global interest in asset tokenization
Interest in regulated digital asset initiatives is spreading beyond Dubai. Earlier in the week, the London Stock Exchange reportedly partnered with digital asset company Kraken to allow trading in tokenized UK stocks, offering extended market access during nighttime trading hours.
Mini dictionary: Tokenization, the process of converting ownership rights in physical or financial assets into digital tokens on a blockchain, allows for greater accessibility, liquidity, and transparency. These tokens can represent anything from equities to real estate or funds.
VARA’s recent efforts include granting its 50th virtual asset service provider (VASP) license to Tribe Tokenisation FZE, further indicating Dubai’s push to build out its regulatory and market infrastructure for the digital economy.
Tokenized asset market growth
Investor interest in tokenized real-world assets (RWAs) continues to grow. In the past 30 days, the number of RWA asset holders increased by 103%, reaching 3.2 million, while the total market value of tokenized assets rose 2% to $38.5 billion, according to figures from data provider RWA.xyz.
Securitize currently leads the global tokenization sector with $4.9 billion in assets under management. Ondo Finance is close behind, managing $3.5 billion in tokenized assets.
| Platform | Tokenized Assets Under Management |
|---|---|
| Securitize | $4.9 billion |
| Ondo Finance | $3.5 billion |
This surge in tokenized asset holders and total value reflects broader trends as financial institutions and market operators integrate blockchain-based solutions into conventional finance.
