VARA approves the first tokenized fund in Dubai

The digital assets arm of Nomura Group, Laser Digital, has received in-principle approval from Dubai’s virtual asset regulatory authority (VARA) to tokenize its global flagship Laser Carry Fund (LCF), on KAIO blockchain, under the regulator’s pilot ARVA Framework.

The tokenized fund will be available to institutional investors who meet VARA’s eligibility requirements.

The Laser Carry Fund, when tokenized and fully licensed by Dubai’s VARA, will become the first institutional-grade RWA tokenized product offering under VARA. Each Tokenized LCF (TLCF) token will offer exposure to tokenized units of the Laser Digital Carry Fund SP, a Cayman Segregated Portfolio.

The token will be available on one or more public blockchains through

KAIO, while Komainu will act as the VARA-licensed custodian for the tokenized fund units. The token will also be made available on secondary markets on crypto exchanges selected by VARA Dubai.

Jez Mohideen, Co-founder and CEO of Laser Digital, noted that the approval was a key step in responsibly delivering institutional-grade and composable RWA products to investors. He added, “We’re pleased to launch this product under VARA, building upon our shared commitment to higher governance and robust investor policies in active on-chain asset management.”

The token can be subscribed to and redeemed during pre-set windows, with pricing linked to LCF’s net asset value. Secondary trading will be enabled on selected exchanges and trading venues, subject to necessary compliance controls.

LCF token is the first of a series of RWA asset management tokens built on the VARA ARVA Framework, with further upcoming plans to expand the offering to other institutional asset management products.

QNB Group launches regulated tokenized market fund

Earlier this year, QNB Group (Qatar National Bank), Standard Chartered, and DMZ Finance, an RWA tokenization infrastructure provider, launched the Dubai International Financial Centre’s (DIFC) first regulated tokenized money market fund, the QCD Money Market Fund (units in QCDT).

The fund’s underlying investment is managed by QNB Group, the largest bank in the Middle East and Africa, with DMZ Finance serving as co-initiator and exclusive provider of tokenization infrastructure.

The fund appointed Capricorn Fund Managers (DIFC) Limited (CFMD) to act as the fund manager, while Standard Chartered serves as custodian of the QCD Money Market Fund, providing custody of the underlying assets. In 2024, Standard Chartered officially launched its regulated digital asset custody services in the DIFC.

Soon after, Bybit became the first crypto exchange to deploy QCDT as collateral, creating up to USD 1 billion in borrowing capacity, providing new opportunities for institutions.

Bahrain also launches a tokenized investment platform

In Bahrain, ATME, the crypto and digital asset exchange licensed by the Central Bank of Bahrain (CBB), also introduced a regulated tokenized investment product platform that enables brokers and asset managers to issue and trade investment products directly on its platform.

The region and globe are opening up to the tokenization of financial products and services. Nasdaq-listed DeFi Technologies has entered the MENA region with offices in the UAE to offer not only digital asset ETPs, but also tokenized equities.