VARA, Securitize Sign MoU for Tokenization Innovation in Dubai

Dubai’s Virtual Assets Regulatory Authority (VARA) and BlackRock-backed tokenization platform Securitize signed a Memorandum of Understanding (MoU) to advance tokenization and digital asset infrastructure across the United Arab Emirates and Dubai.

The MoU will establish a collaborative framework to support regulated tokenization initiatives, foster institutional participation and strengthen Dubai’s digital asset ecosystem, the companies said in a Thursday announcement shared with Cointelegraph.

VARA and Securitize seek to support tokenization initiatives in Dubai, including projects initiated by VARA, to attract more talent and explore how tokenized financial products should operate under Dubai’s regulatory framework.

Tokenization initiatives are also gaining traction in other financial technology-focused jurisdictions. Days earlier, the London Stock Exchange reportedly partnered with crypto exchange Kraken to launch tokenized stock trading on the operator’s night-time trading venue to offer 24/5 trading.

Related: London Stock Exchange partners with Kraken parent for tokenized UK stocks: FT

Tokenization is evolving into “mainstream” financial infrastructure: Securitize CEO

Dubai emerged as one of the “world’s most forward-looking jurisdictions for digital asset innovation,” said Carlos Domingo, co-founder and CEO of Securitize, emphasizing the importance of collaborating with regulators as tokenization moves from “concept to mainstream financial infrastructure.” 

At the beginning of July, VARA granted its 50th virtual asset service provider (VASP) license to tokenization platform Tribe Tokenisation FZE.

When asked about the specific infrastructure goals, a spokesperson for VARA told Cointelegraph that the MoU’s main goal is to create a broad framework for collaboration between the two firms, rather than a specific 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.” 

There won’t be any specific projects announced “at this stage” of the MoU, but the agreement will provide a collaborative framework to “support relevant tokenisation initiatives in Dubai,” added the spokesperson. 

Total RWA asset value, all-time chart. Source: RWA.xyz 

The announcement follows increasing investor demand for tokenized assets, which has seen total RWA holders rise 103% in the past 30 days to 3.2 million. The total value of tokenized assets also rose 2% to $38.5 billion in the same period, according to data provider RWA.xyz. 

Securitize ranks as the world’s largest tokenization platform with $4.9 billion in tokenized assets under management (AUM). Ondo Finance ranks second with $3.5 billion.

Magazine: How Hong Kong is turning tokenized bonds into real market infrastructure