Dubai, UAE – July 2025 — In a groundbreaking move that cements Dubai’s position at the forefront of global financial innovation, the Dubai Financial Services Authority (DFSA) has granted regulatory approval for the launch of the QCD Money Market Fund (QCDT)—the city’s first officially sanctioned tokenized money market fund. This milestone development is a joint initiative between Qatar National Bank (QNB), the largest bank in the Middle East and Africa, and DMZ Finance, a leading blockchain-based tokenization platform.
The fund is now formally established within the Dubai International Financial Centre (DIFC) and aims to integrate traditional financial assets, such as U.S. Treasuries, into the blockchain ecosystem. The QCDT fund marks a significant shift toward the institutional adoption of blockchain by offering secure, digital access to conventional money market instruments.
Bridging Traditional Finance with Blockchain Innovation
QNB leads the fund’s investment strategy and asset origination, leveraging its deep expertise in traditional finance. Meanwhile, DMZ Finance powers the technical infrastructure, utilizing its robust platform designed for tokenization and stablecoin ecosystems.
Together, the two entities have built a product designed for institutional-grade applications, including:
- Bank-eligible collateral
- Stablecoin reserves
- Exchange liquidity support
- Web3-based payments
This convergence of traditional finance with blockchain technology offers a new way for institutions to access and deploy capital efficiently, transparently, and securely.
A Strategic Step in a Thriving Innovation Hub
Speaking on the fund’s launch, Silas Lee, CEO of QNB Singapore, emphasized its strategic importance:
“As the Middle East rapidly emerges as a global hub for financial innovation, the successful deployment of QCDT further consolidates QNB’s leadership in the regional financial ecosystem and reflects our long-term vision to shape the next generation of financial infrastructure.”
Dubai’s regulatory environment continues to be a magnet for blockchain-related ventures, with the DFSA playing a central role in nurturing a responsible and forward-thinking ecosystem for digital asset development.
Tokenization Gains Momentum in the UAE
The approval of the QCDT fund aligns with broader trends shaping the digital finance landscape in the region. A joint report from Ripple and Boston Consulting Group forecasts the real-world asset (RWA) tokenization market to soar to $18.9 trillion by 2033—a figure that underscores the urgency for financial institutions to adapt.
In March 2025, the DFSA launched its Tokenization Regulatory Sandbox, providing a safe and structured environment for firms to pilot blockchain-based investment products under the Innovation Testing License regime. The sandbox drew significant interest, with nearly 100 firms submitting applications to participate in its first cohort.
Dubai Leads in Tokenized Real Estate and Finance
Dubai is also making significant strides in real estate tokenization, with nearly $400 million in tokenized property transactions recorded in May 2025 alone. This accounted for over 17% of all real estate activity in the city for that month. The momentum was driven by the Virtual Asset Regulatory Authority (VARA), which recently updated its regulatory framework to officially recognize RWA tokenization.
Additionally, a government-backed platform for fractional property ownership was launched, further enabling broader market participation and investment liquidity.
A Glimpse into the Financial Future
With the approval of the QCD Money Market Fund, Dubai continues to demonstrate its commitment to pioneering a next-generation financial infrastructure. By integrating blockchain with time-tested financial instruments, the city is creating a model for how global finance may evolve—digitized, decentralized, and accessible.
This historic step by the DFSA not only opens new avenues for institutional investors but also signals the region’s growing influence in shaping the future of tokenized finance.
