Meet the region’s first tokenized money market fund: DMZ Finance and Qatar National Bank just rolled out the first regulated tokenized money market fund in the DIFC — the QCD Money Market Fund (QCDT) — after securing formal approval from the Dubai Financial Services Authority (DFSA), according to a press release.

SOUND SMART- Tokenizing a money market fund means putting ownership shares on blockchain rails, thereby turning a traditional low-risk, interest-bearing investment vehicle into a digital asset that can be traded, settled, and integrated across decentralized and conventional platforms.

Who’s who: QNB will act as the fund’s lead originator and investment manager, while DMZ is providing the tokenization stack. The vehicle is designed for institutional use cases, including eligible collateral for banks, mapped collateral for centralized exchanges, reserves for stablecoins and a foundational layer for Web3 payment infrastructure.

Approved but not yet live: While QCDT lined up regulatory approval, neither its launch date, fund size, or capital commitments were disclosed. It remains unclear when the vehicle will begin operations or onboard its first tranche of assets.

Zooming out: Regulators in regional financial hubs like Dubai and Doha are laying the groundwork for tokenized finance, with early moves including sandbox programs, licensing frameworks, and pilot projects targeting digital assets. The ADX just recently helped facilitate the region’s first ever digital bond, a USD 100 mn issuance from First Abu Dhabi Bank, while big players like ADQ, International Holding Company, and FAB are working on AED-backed stablecoins. RWAs are projected to be a USD 18.9 tn market by 2033, according to a Ripple and BCG report (pdf).

REMEMBER- The Securities and Commodities Authority (SCA) issued draft rules for tokenized assets in January. The regulation covers contracts on distributed ledger technology (DLT), token transfers and cancellations, and gives the SCA enforcement power over violations.

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