Dubai Approves First Tokenized Money Market Fund as QCDT Launches in DIFC

Highlights:

• Dubai approves its first tokenized money market fund under local financial rules.
• QCDT enables banks exchanges and stablecoin issuers to use real-world assets through blockchain infrastructure.
• The UAE attracts major crypto projects as firms seek friendly markets beyond the European Union’s strict finance rules.

The financial regulator of Dubai has authorized the QCD Money Market Fund (QCDT), the first tokenized fund of its kind in the city. The fund was launched in cooperation between Qatar National Bank (QNB) and DMZ Finance. The fund will be based in the Dubai International Financial Centre (DIFC), where it will operate under local finance rules. QNB will handle fund origination and investment, and DMZ Finance will offer blockchain infrastructure. This setup allows the fund to move traditional instruments like U.S. Treasuries onto the blockchain.

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 approval supports Dubai’s broader goal to connect traditional finance with digital assets. QCDT will serve several institutional purposes across the financial sector. It offers applications in stablecoin reserves, collateral for exchanges, and tools for liquidity management. The fund is also compatible with Web3 payment infrastructure, which helps expand its use across digital platforms.

QNB is also developing its digital asset approach with the introduction of new services to large clients. DMZ Finance will facilitate this transition through the power of tokenization. In their joint venture, the two companies will endeavor to grow digital asset services in the Middle East and beyond. They seek to integrate tokenized solutions into global-standard financial systems.

Tokenized Money Market Fund Offers Institutional Use Across Digital Finance

QCDT allows multiple financial institutions to access stable, tokenized instruments for various needs. Banks can use the fund as qualifying collateral, and trading platforms can use it as mapped collateral. It can be held by stablecoin issuers to back the money supply and by Web3 platforms to enable payment systems.

The fund will offer stable capital, strong custody, and complete transparency via blockchain tracking. These features make it suitable for institutional use without adding complexity. Ripple and BCG have recently estimated that the tokenized real-world asset market may, by 2033, grow to a scale of $18.9 trillion. The report listed Dubai and Doha among the first to construct compliant tokenized asset frameworks. These cities are investing in systems that support the growth of asset-backed digital finance. Nathan Ma, chairman of DMZ Finance, said tokenization is helping to connect capital markets with digital assets. His firm works with banks and institutions to build infrastructure for tokenized products.

UAE’s Digital Strategy Attracts Global Crypto Firms and Projects

Dubai continues to support digital finance with new partnerships and initiatives. In May, the city’s Department of Finance signed a deal with Crypto.com to allow crypto payments for government services. More recently, Dubai approved RLUSD, Ripple’s stablecoin, for financial use within the DIFC. These developments show the city’s interest in expanding digital asset services.

At the same time, the UAE attracts investment from major crypto firms. A state-linked company in Abu Dhabi plans to invest $2 billion into Binance using USD1, a stablecoin by World Liberty Financial. Meanwhile, experts say many firms now view the UAE as a safer base compared to the strict rules seen in Europe.