The Dubai Financial Services Authority (DFSA) has approved the QCD Money Market Fund (QCDT), a joint venture between Qatar National Bank (QNB) and DMZ Finance, as the first tokenized money market fund within the Dubai International Financial Centre (DIFC).
DMZ Finance provides the tokenization infrastructure, while QNB manages investments. Designed for institutional use, QCDT offers versatile applications, including serving as collateral for banks and exchanges, backing stablecoin reserves, and supporting Web3 payment systems.
This approval marks a significant step in QNB’s digital asset strategy and reinforces the Middle East’s position as a financial innovation hub. Dubai is actively promoting digital finance, having recently explored cryptocurrency for government payments and approved Ripple’s RLUSD stablecoin.
Industry experts believe the UAE is becoming a prime destination for crypto and stablecoin companies seeking to avoid the European Union’s new, burdensome Markets in Crypto-Assets (MiCA) regulation, which took effect on December 30.
MiCA’s complex requirements, particularly mandating that stablecoin issuers hold significant percentages of their reserves (30% for small, 60%+ for large) in low-risk, EU-based commercial banks, are pushing many firms to relocate.
With Europe’s regulatory environment tightening, the UAE’s open-door policy and strategic investments are positioning it as a key global hub for digital asset innovation and capital.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
