The digital assets arm of Nomura Group Laser Digital, has received in-principle approval from Dubai’s VARA to tokenize its global flagship Laser Carry Fund (LCF), on KAIO blockchain, under the regulator’s pilot ARVA Framework, and will be available to institutional investors who meet VARA’s eligibility requirements. In 2023 VARA granted Laser Digital Middle East FZE, a full crypto license that would allow it to offer virtual asset broker dealer and investment management services in the UAE.
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 offered to professional & institutional investors 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 comes with the added advantage of being tradable on the secondary market and on select VARA-licensed exchanges, marking a significant milestone in the region’s digital asset landscape.
Jez Mohideen, Co-founder and CEO of Laser Digital, stated, “The in-principle approval to launch the first Dubai-native RWA asset management token is a key step in responsibly delivering institutional-grade and composable RWA products to investors. 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 VARA ARVA Framework, with further upcoming plans to expand the offering to other institutional asset management products.
QNB Group launched its first regulated tokenized market fund out of DIFC
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 initiated and 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.
In Bahrain as well 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. We have seen Nasdaq listed Defi Technologies enter the MENA region with offices in the UAE to offer not only digital asset ETPs, but also tokenized equities.
