Dubai’s regulator VARA (Virtual Assets Regulatory Authority) has signed a Memorandum of Understanding (MoU) with Securitize, a tokenization platform backed by BlackRock, in a move aimed at accelerating regulated tokenization activity in the United Arab Emirates.
According to a Thursday announcement shared with Cointelegraph, the MoU sets out a collaboration framework designed to support tokenization and digital asset infrastructure in Dubai, encourage institutional participation, and help shape how tokenized financial products can operate within the emirate’s regulatory environment.
Key takeaways
- VARA and Securitize have agreed to work together on a regulatory-and-industry collaboration framework for tokenization in Dubai.
- The MoU is positioned as a broad cooperation model rather than the announcement of a specific tokenized product or technology stack.
- Dubai continues to position tokenization as regulated financial infrastructure, with VARA pointing to its regulatory “perspective” as a key contribution.
- Demand for tokenized real-world assets (RWAs) has increased sharply in recent weeks, with RWA.xyz reporting rising holder counts and total tokenized asset value.
- Dubai’s efforts arrive as other market operators—such as the London Stock Exchange’s reported partnership with Kraken—push tokenized securities toward more established trading schedules.
VARA and Securitize target regulated tokenization in Dubai
Under the MoU, VARA and Securitize said they aim to support regulated tokenization initiatives across Dubai and the broader UAE. The agreement is also intended to cover tokenization projects initiated by VARA, with a specific focus on understanding how tokenized financial products should function inside Dubai’s existing regulatory framework.
When asked by Cointelegraph about the MoU’s infrastructure objectives, a VARA spokesperson said the effort is meant to establish a collaboration structure between the two organizations rather than to deliver a particular technical implementation or a named product.
“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 added that no concrete projects will be announced “at this stage.” Still, the agreement creates a formal channel for cooperation that VARA said is intended to “support relevant tokenisation initiatives in Dubai.”
Tokenization shifts from concept to “mainstream” infrastructure
Dubai’s push for tokenization is being framed not as an experimental niche, but as a step toward more conventional financial-market infrastructure. Carlos Domingo, co-founder and CEO of Securitize, described Dubai as among the most “forward-looking jurisdictions” for digital asset innovation and emphasized the importance of regulatory collaboration as tokenization matures.
Domingo’s remarks reflected a broader industry narrative: tokenization is increasingly discussed as a pathway for traditional finance to gain on-chain settlement and programmable workflows, but only if regulators can provide clear operating boundaries.
That theme is reinforced by VARA’s licensing activity. Earlier in July, VARA granted its 50th virtual asset service provider (VASP) license to Tribe Tokenisation FZE—an example of how the regulator has been expanding the number of licensed participants in the ecosystem. While the MoU with Securitize does not announce specific licensed activity, it suggests that regulators are looking to institutional-grade platforms as partners in building “trusted” markets.
Rising RWA adoption meets institutional platform scale
Beyond Dubai-specific policy developments, the MoU arrives amid a broader acceleration in tokenized real-world assets. Data provider RWA.xyz reports that the total number of RWA token holders rose 103% over the prior 30 days to 3.2 million. Over the same period, it said the total value of tokenized assets increased by 2% to $38.5 billion.
Those figures help explain why institutional platforms are increasingly positioning tokenization as a serious revenue and infrastructure layer rather than a purely experimental technology. Securitize is described in the announcement as the world’s largest tokenization platform by tokenized assets under management (AUM), with $4.9 billion. Ondo Finance is reported as second, with $3.5 billion.
For investors and market participants, the practical implication is that regulatory discussions are increasingly happening alongside measurable growth in both participation and capital in tokenized asset categories—particularly RWAs, where compliance and asset governance are central concerns.
Dubai’s move mirrors broader tokenized securities momentum
Dubai’s MoU also lands as tokenization continues to spread across market structures in other jurisdictions. Days earlier, Cointelegraph reported that the London Stock Exchange reportedly partnered with crypto exchange Kraken to launch tokenized stock trading on the operator’s night-time trading venue, aiming to offer 24/5 trading.
While the Dubai agreement is focused on regulated tokenization infrastructure and the operation of tokenized financial products under VARA’s oversight, the parallel is clear: both developments signal that tokenization is moving from issuance and experimentation toward distribution and market access—where regulatory fit, liquidity, and operational reliability become decisive.
As VARA and Securitize begin working under the MoU framework, the key next question for participants will be whether the collaboration produces specific pilot programs or licensing pathways—and how Dubai’s regulatory approach will translate tokenization activity into durable market infrastructure as demand for RWAs continues to grow.
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