Dubai’s Virtual Assets Regulatory Authority (VARA) and BlackRock-backed tokenization platform Securitize have signed a Memorandum of Understanding (MoU) that will push tokenization and digital asset infrastructure forward in Dubai and the wider United Arab Emirates. The companies announced the agreement in a statement shared by both organizations, positioning it as a major step toward regulated tokenized securities, funds, and alternative assets in a region already bustling with Web3 activity.

Under the MoU, VARA and Securitize will create a broad collaborative framework to support tokenization initiatives, including those proposed by VARA itself. The main objective is not tied to a specific technology stack or product, but rather to shape an environment where institutional tokenization can develop under clear, predictable rules. By pairing VARA’s regulatory perspective with Securitize’s institutional experience, the two organizations expect to identify practical ways to encourage the growth of trusted regulated tokenized markets in Dubai.

Collaborative framework takes shape

The agreement is meant to deepen Dubai’s position as one of the world’s most forward-looking jurisdictions for digital asset regulation. For Securitize, the partnership is another sign that tokenization is no longer an experimental niche. Carlos Domingo, co-founder and chief executive officer of Securitize, said in the announcement that collaboration with regulators is vital at a moment when tokenization is moving from concept to mainstream financial infrastructure.

Securitize is known for working with large asset managers on tokenized investments. It operates one of the largest tokenization platforms globally, with billions of dollars in tokenized assets under management. BlackRock’s participation in Securitize has further strengthened the category by drawing attention from traditional finance institutions, including funds, private credit managers, and capital markets players. The new MoU in Dubai is expected to deepen those relationships in an emerging market with a clear regulatory regime.

A spokesperson for VARA explained that, at this stage, no specific projects will be announced under the MoU. The purpose of the agreement is wider: to establish a general framework that supports relevant tokenization initiatives in Dubai and creates the conditions for institutions to experiment and eventually deploy regulated products. The spokesperson said VARA would use Securitize’s experience to help shape policies that keep investor protection strong without stifling innovation.

Why Dubai is becoming a tokenization hub

Dubai has spent the past few years building its virtual asset regulatory system from the ground up. VARA was established under the Dubai Virtual Asset Regulation Law and became operational in 2022, making the emirate one of the first jurisdictions in the world to create a dedicated regulator for virtual assets. Since then, VARA has issued multiple frameworks covering different activities, including advisory, broker-dealer services, custody, and exchange operations.

One of VARA’s clearest signs of momentum came in early July, when it granted its 50th virtual asset service provider license to tokenization platform Tribe Tokenization FZE. That milestone underscored the growing demand for licensed virtual asset activities in Dubai, especially among companies using blockchain technology to bridge traditional finance with tokenized markets. Tribe Tokenization became one of many licensed providers that see the UAE as a base for

Source: Cointelegraph News