- Dubai approves first tokenized money-market fund by QNB and DMZ Finance in DIFC.
- QCDT brings U.S. Treasuries on-chain, enabling stablecoin and Web3 financial use cases.
- UAE’s crypto-friendly stance draws firms amid EU MiCA rules and regional tokenization growth.
Dubai’s financial regulator has granted approval to the QCD Money Market Fund (QCDT), the first tokenized money-market fund to be based within the Dubai International Financial Centre (DIFC).
The fund, announced on July 4, is a joint venture between Qatar National Bank (QNB) and the blockchain infrastructure firm DMZ Finance.
Bringing U.S. Treasuries On-Chain
The newly approved QCDT fund is designed to bring conventional, low-risk assets like U.S. Treasuries onto the blockchain. Under the partnership, QNB, one of the region’s largest banks, will manage the investment strategy, while DMZ Finance provides the underlying tokenization technology.
The fund targets several institutional applications such as bank-eligible collateral, stablecoin reserves, Web3 payment infrastructure, and liquidity pools for exchanges.
DMZ Finance Co-Founder Nathan Ma stated that the product aims to create an infrastructure that “links traditional capital markets to the emerging digital asset economy” within a fully compliant and transparent framework.
Strategic Expansion in the DIFC
The QCDT fund is the first of its kind to receive approval within the DIFC jurisdiction. It will operate under the oversight of the DFSA, using smart contracts and digital ledgers to simplify asset management functions. The project follows DMZ Finance’s strategic partnership with Qatar National Bank to integrate tokenization technologies into the region’s financial markets.
Related: GAP 3 Partners Receives VASP License From Dubai’s VARA
DMZ Finance is one of the initial firms accepted into the Qatar Financial Centre’s Digital Lab cohort, which focuses on advancing blockchain-based financial innovations. The alliance supports ongoing regional efforts to expand real-world asset tokenization.
Part of UAE’s Broader Push into Digital Assets
The fund’s launch comes amid increasing blockchain adoption in the United Arab Emirates. Recent developments include an Abu Dhabi-based firm’s $2 billion investment plan in crypto exchange Binance. The deal involves USD1, a stablecoin issued by World Liberty Financial.
Related: Dubai’s DMCC Partners AQUA-INDEX to Launch World’s First Water-Backed Digital Token
The UAE’s flexible regulatory approach is attracting firms affected by the European Union’s MiCA rules, which impose reserve requirements on stablecoin issuers.
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