Dubai's First Tokenized Money Market Fund Receives DFSA Approval in QNB-DMZ Finance Partnership

The QCD Money Market Fund (QCDT), a partnership between Middle East banking giant QNB and DMZ Finance, has received formal regulatory approval from the Dubai Financial Services Authority (DFSA), making it the first tokenized money market fund officially established in Dubai International Financial Centre (DIFC).

The landmark approval represents a significant milestone in the advancement of real-world asset (RWA) tokenization in the Middle East region and underscores Dubai's growing ambition to become a global center for institutional-grade digital finance infrastructure.

QNB, the largest financial institution in the Middle East and Africa, serves as the fund's lead originator and investment manager, while Singapore-headquartered DMZ Finance acts as co-originator, providing the exclusive tokenization infrastructure powering the fund, according to a statement on Tuesday.

"QCDT is not only the first DFSA-approved tokenized money market fund in Dubai but also a pivotal step in QNB's digital asset journey," said Silas Lee, CEO of QNB Singapore. "It marks a new phase in our strategic roadmap and lays a strong foundation for the future of multi-asset tokenization."

Regional RWA Market Opportunity

The approval comes as the tokenized real-world asset market shows explosive growth potential. DMZ cited a recent report by Ripple and BCG, which noted that the market for tokenized RWAs is projected to reach $18.9 trillion by 2033 under a midpoint scenario, highlighting the massive opportunity for compliant tokenization infrastructure.

Financial hubs including Dubai and Qatar are actively building comprehensive digital asset strategies, featuring regulatory frameworks, sandbox programs, and central bank cooperation mechanisms. The QCDT approval represents a key component of the region's broader strategic agenda to establish the Middle East as a global center for RWA innovation and capital formation.

"The tokenization of real-world assets is becoming a fundamental bridge between traditional capital markets and the digital asset economy. DMZ Finance is working closely with regulatory and financial institutions across the Middle East and other emerging markets to promote the compliant development of RWA infrastructure," Nathan Ma, co-founder and chairman, DMZ Finance, said.

Institutional Use Cases and Market Integration

QCDT is designed to serve multiple institutional use cases, positioning it as a foundational layer for broader digital finance adoption. The fund can function as eligible collateral for banks, mapped collateral for centralized exchanges, reserves for stablecoins, and a foundational layer for Web3 payment infrastructure.

The product's core strengths include stable yield generation, institutional-grade custody solutions, on-chain transparency, and regulatory endorsement, setting a benchmark for compliant tokenized financial products in the Middle East region.

The successful launch of QCDT reflects the region's increasing regulatory maturity and strategic support for RWA tokenization. As major global economies accelerate the development of regulatory frameworks for tokenized assets and stablecoins, RWAs are increasingly recognized as a critical bridge between traditional finance (TradFi) and decentralized finance (DeFi).

Lee highlighted the broader implications: "As the Middle East rapidly emerges as a global hub for financial innovation, the successful deployment of QCDT further consolidates QNB's leadership in the regional financial ecosystem and reflects our long-term vision to shape the next generation of financial infrastructure."