VARA and Securitize Sign MoU to Foster Tokenization Innovation in Dubai
Dubai’s Virtual Assets Regulatory Authority (VARA) and BlackRock-backed tokenization platform Securitize have signed a Memorandum of Understanding (MoU) aiming to advance tokenization and digital asset infrastructure throughout the UAE and Dubai. The agreement establishes a collaborative framework to support regulated tokenization projects, encourage institutional involvement, and strengthen Dubai’s digital asset ecosystem.
New Collaborative Framework for Tokenization Regulation
VARA and Securitize officially announced their intent to jointly advance tokenization and digital asset infrastructure across the region. The MoU will not focus immediately on a specific product or tech stack but on creating a broad cooperative framework supporting ongoing tokenization initiatives, including those led by VARA.
A VARA spokesperson told Cointelegraph there are no plans to announce specific projects at this stage of the agreement; instead, it aims to provide a foundation that fosters growth and adoption of tokenization in Dubai.
VARA’s Role and Tokenization Prospects in the UAE
VARA is actively fostering the digital assets space, having recently granted its 50th virtual asset service provider license to Tribe Tokenisation FZE, signaling growing institutional interest in the market.
The partnership with Securitize is also geared towards attracting talent and exploring how tokenized financial products should operate within Dubai's regulatory framework.
Securitize’s Position and the Global Tokenization Landscape
Carlos Domingo, Securitize’s CEO and co-founder, emphasized Dubai’s standing as one of the most forward-looking jurisdictions for digital asset innovation, highlighting the importance of collaborating with regulators to advance tokenization from concept to mainstream financial infrastructure.
Securitize ranks as the world’s largest tokenization platform, managing $4.9 billion in tokenized assets under management and serving institutional investors. The global tokenization market is rapidly evolving: for instance, days earlier, the London Stock Exchange partnered with crypto exchange Kraken to enable tokenized stock trading in an extended trading venue.
Growing Demand for Tokenized Assets and Economic Impact
Data from RWA.xyz shows a 103% increase over 30 days in holders of tokenized real-world assets, now totaling 3.2 million, alongside a 2% rise to $38.5 billion in total tokenized asset value.
This collaboration reflects rising institutional interest in tokenization and heightened regulatory support in the UAE’s fast-growing digital financial sector.
Why it matters
The signing of the MoU between VARA and Securitize marks a significant advancement in the development of tokenization infrastructure in the UAE and Dubai. This partnership not only reinforces efforts to regulate tokenized assets but also signals growing institutional engagement in the region’s digital markets. Establishing a collaborative framework for technology and regulatory guidance is critical for advancing tokenization as a fully integrated segment of the financial sector. Given the double-digit growth in both the number of investors and the value of tokenized assets, VARA’s collaboration with the leading platform Securitize opens new horizons for innovation and digital economy growth, further solidifying Dubai’s status as a global fintech hub.
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