Fresh tokenized fund set to hit the market: Laser Digital — the digital assets arm of Tokyo-based Nomura — received in-principle approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to tokenize its global flagship Laser Carry Fund (TLCF), according to a press release. The approval, which was granted under the regulator’s pilot Asset-Referenced Virtual Asset framework, paves the way for the first institutional-grade tokenized real-world asset in Dubai. Neither the timeline for the launch or the fund size were disclosed.

How it will work: The new Dubai-based product will complement a version of the Laser Carry Fund that has already been tokenized and offered to investors in Singapore through digital-assets platform KAIO, which acts as issuer there, Laser Digital told us. The Singapore vehicle feeds into a traditional Cayman Islands-based Laser Carry Fund managed by Laser Digital under its existing VARA asset management license. Tokens will be issued through KAIO on public blockchains, with Komainu serving as the VARA-licensed custodian.

TLCF will be open to professional and institutional investors in the UAE, offering exposure to tokenized units of Laser Digital’s Cayman-based Laser Carry Fund Segregated Portfolio. Each token will track the fund’s net asset value and can be subscribed to or redeemed during specific windows with the option to be traded on the secondary market.

SOUND SMART- In practice, this means Laser Digital is putting shares of its investment fund on blockchain rails, allowing qualified investors to buy and trade digital tokens that represent fund ownership. This structure is designed to add liquidity and accessibility to institutional fund products while preserving governance and investor safeguards under VARA’s oversight.

Not the first tokenized fund: DMZ Finance and Qatar National Bank (QNB) rolled out the region’s firstregulated tokenized money market fund, the QCD Money Market Fund (QCDT), in July after securing regulatory approval. While the fund lined up regulatory clearance, no details on its launch date and size were given.

Zooming out: The approval comes as regulators across the region ramp up efforts to formalize tokenized finance, as real-world assets are projected to grow into an USD 18.9 tn market by 2033. The ADX recently facilitated the region’s first digital bond, a USD 100 mn issuance by First Abu Dhabi Bank, while state-linked heavyweights such as ADQ, International Holding Company, and FAB are developing AED-backed stablecoins. Meanwhile, the Securities and Commodities Authority (SCA) issued draft rules for tokenized assets, covering distributed ledger technology (DLT) contracts, token transfers, and enforcement powers.

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