Dubai Launches Its First RWA Fund

Dubai Accepts First RWA Fund

The Dubai Financial Services Authority (DFSA) has officially granted a license to the QCD Money Market Fund (QCDT), marking a significant milestone as it is the first tokenized money market fund to operate legally in the Dubai International Financial Centre (DIFC). This event not only reinforces Dubai’s role but also positions the Middle East, particularly Dubai and Doha, as new potential hubs in the global wave of tokenized real-world assets (RWA).

QCDT is the result of a strategic alliance between two major players:

• Qatar National Bank (QNB): The oldest and largest commercial bank in the Middle East and Africa, established in 1964, with 50% of its shares owned by the Qatar National Investment Fund. QNB is responsible for developing the investment strategy and selecting high-quality assets such as U.S. government bonds.
• DMZ Finance: A pioneering technology platform in the field of asset tokenization and stablecoins, and the first member to join the Digital Lab of the Qatar Financial Centre (QFC). DMZ Finance is tasked with designing the blockchain architecture, ensuring transparency, traceability, and smooth operation in the digital environment.

QCDT aims to bring traditional financial assets onto the blockchain, opening up numerous opportunities for the financial sector, including use as collateral, backing stablecoins, reserves for exchanges, and building Web3 payment infrastructure.

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Middle East: An Ideal Destination for Digital Assets

In the context of the European Union tightening regulations on stablecoins through the MiCA framework, many financial institutions and crypto businesses have shifted towards regions with more open legal environments, with the Middle East emerging as a new “paradise.” Dubai, with its transparent licensing system and friendly policies, has attracted numerous giants like Binance, OKX, and Crypto.com.

Since legalizing crypto assets in September 2021, Dubai has continuously expanded its Web3 ecosystem. From launching a virtual headquarters in the metaverse The Sandbox to the largest bank in Dubai, Emirates NBD, implementing crypto trading services in March 2025, Dubai consistently reaffirms its ambition to lead. Earlier this year, plans to build a 17-story crypto tower were announced, aiming to become a physical hub for blockchain, DeFi, and Web3 companies in the region.

Recently, the DFSA made headlines again by approving RLUSD, Ripple’s USD-pegged stablecoin, as a legal payment medium within the DIFC financial district.