The Dubai Financial Services Authority (DFSA) has given the green light to the region’s inaugural tokenized money market fund, positioning the emirate at the forefront of the digital asset finance landscape.
Highlights of the Development:
Dubai has launched its first tokenized money market fund, initiated by Qatar National Bank (QNB) in collaboration with DMZ Finance.
This fund aims to integrate traditional assets like U.S. Treasuries into digital platforms for applications in Web3 and institutional finance.
The decision underscores the increasing prominence of the Middle East in the realm of real-world asset tokenization.
The QCD Money Market Fund (QCDT), a collaborative effort between QNB and DMZ Finance, has received official approval from the DFSA, as announced recently.
Based in the Dubai International Financial Centre (DIFC), QNB will spearhead investment strategy and asset origination, while DMZ Finance will provide the necessary blockchain technology.
On-Chain Access to U.S. Treasuries
The two organizations have stated that the fund is intended to transition traditional financial instruments like U.S. Treasuries onto a blockchain, thereby facilitating a range of applications such as stablecoin reserves, Web3 payment mechanisms, collateral for exchanges, and tools for institutional liquidity.
This approval serves as an indicator of the Middle East’s escalating position in the global movement to digitize real-world assets (RWAs).
“Tokenization of real-world assets is increasingly recognized as a crucial link between traditional capital markets and the digital asset economy,” remarked Nathan Ma, Co-Founder and Chairman of DMZ Finance.
A recent joint study by Ripple and Boston Consulting Group (BCG) estimates that the market for RWA tokenization could soar to $18.9 trillion by 2033, with cities like Dubai and Doha emerging as pioneers.
As the largest bank in the region, QNB is leveraging its extensive institutional presence, while DMZ Finance, part of Qatar’s Digital Lab initiative, is focused on integrating tokenization into the local financial fabric.
Dubai’s First Tokenized Money Market Fund Receives Official Approval from DFSA, a Partnership Project by QNB and DMZ Finance
We are proud to announce that the QCD Money Market Fund (QCDT), a partnership project of @DMZ_Finance with @QNBGroup, as investment manager, has… pic.twitter.com/AYFX0IxIcY
— DMZ Finance (@DMZ_Finance) July 8, 2025
“The establishment of QCDT not only marks the first DFSA-approved tokenized money market fund in Dubai but also represents a significant milestone in QNB’s digital asset strategy,” stated Silas Lee, CEO of QNB Singapore.
“This initiative signifies a new chapter in our strategic objectives and lays a robust groundwork for the future of multi-asset tokenization.”
The collaboration signifies a growing trend within the finance sector, where banks and fintech companies are joining forces to revolutionize financial services through compliant digital solutions.
UAE Strengthens Its Position as a Crypto Hub
This development aligns with the UAE’s ongoing ambition to become a leading center for blockchain innovation and cryptocurrency finance, as regulatory frameworks continue to draw major global players.
In a related report, a state-backed investment firm in Abu Dhabi is set to invest $2 billion into crypto exchange Binance using USD1, a stablecoin created by World Liberty Financial, a venture closely associated with the Trump family.
Market experts believe that the UAE is positioning itself as a prime destination for crypto and stablecoin operations seeking alternatives to the newly implemented Markets in Crypto-Assets (MiCA) regulation within the European Union.
This regulation, which became fully effective on December 30, presents numerous challenges for crypto businesses in the 27-member bloc, prompting many to contemplate relocation, according to industry analysts.
Among its stringent stipulations, smaller stablecoin issuers must maintain 30% of their funds in low-risk EU-based commercial banks, while larger entities like Tether are required to keep 60% or more in similar financial institutions.
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