Dubai’s financial regulator has approved the region’s first tokenized money market fund as the city seeks to lead in the digital asset finance space.
Key Takeaways:
- Dubai has approved its first tokenized money market fund, led by QNB and DMZ Finance.
- The fund brings traditional assets like U.S. Treasuries on-chain for use in Web3 and institutional finance.
- The move highlights the Middle East’s growing leadership in real-world asset tokenization.
The Dubai Financial Services Authority (DFSA) granted approval to the QCD Money Market Fund (QCDT), jointly launched by Qatar National Bank (QNB) and DMZ Finance, according to a recent announcement.
The fund will be domiciled in the Dubai International Financial Centre (DIFC), with QNB handling asset origination and investment strategy, while DMZ Finance powers the underlying blockchain infrastructure.
Tokenized Fund Brings U.S. Treasuries On-Chain
According to both firms, the product is designed to bring traditional instruments like U.S. Treasuries on-chain, enabling use cases such as stablecoin reserves, Web3 payment systems, exchange collateral, and institutional liquidity tools.
The approval reflects the Middle East’s rising profile in the global race to digitize real-world assets (RWAs).
“The tokenization of real-world assets is becoming a fundamental bridge between traditional capital markets and the digital asset economy,” Nathan Ma, Co-Founder and Chairman of DMZ Finance, said.
A recent joint study by Ripple and BCG projects the RWA tokenization market could reach $18.9 trillion by 2033, with jurisdictions like Dubai and Doha emerging as early leaders.
QNB, the region’s largest bank, is leveraging its deep institutional reach, while DMZ Finance, part of Qatar’s Digital Lab cohort, is working to embed tokenization into local financial infrastructure.
“QCDT is not only the first DFSA-approved tokenized money market fund in Dubai but also a pivotal step in QNB’s digital asset journey,” Silas Lee, CEO of QNB Singapore, said.
“It marks a new phase in our strategic roadmap and lays a strong foundation for the future of multi-asset tokenization.”
The partnership underscores a broader shift in how banks and fintech platforms are collaborating to reshape finance through compliant digital instruments.
UAE Continues to Attract Crypto Firms
The move comes as the UAE continues to position itself as a regional hub for blockchain innovation and crypto finance, with regulatory clarity attracting major global players.
As reported, a state-backed investment firm in Abu Dhabi is set to make a $2 billion investment into crypto exchange Binance using USD1, a stablecoin developed by World Liberty Financial — a crypto venture closely tied to the Trump family.
Experts claim the UAE is poised to become a key destination for crypto and stablecoin ventures seeking refuge from the European Union’s (EU) newly implemented Markets in Crypto-Assets (MiCA) regulation.
The regulatory framework, which took full effect on December 30, is creating significant challenges for crypto firms within the 27-member bloc, prompting many to consider relocating, according to industry experts.
Among its stringent requirements, small stablecoin issuers must hold 30% of their reserves in low-risk EU-based commercial banks, while major players like Tether face a mandate to maintain 60% or more in similar institutions.
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