UAE emerges as a hub for blockchain-based asset tokenization
A hub for blockchain-based asset tokenization
The United Arab Emirates (UAE) is positioning itself as a global leader in blockchain-based asset tokenization, fueled by a forward-thinking regulatory framework and a booming real estate market.
Industry leaders say the country’s clarity on digital asset laws has provided the necessary foundation for tokenization to flourish, according to Cointelegraph.
Real-world asset (RWA) tokenization, which involves converting physical assets into blockchain-based tokens, has gained momentum worldwide. As of early 2024, on-chain RWAs reached an all-time high of $17 billion, reflecting growing investor interest. The UAE, particularly Dubai, has emerged as a key player in this trend, with real estate leading the charge.
Real estate leads tokenization push
Developers and institutional investors in the UAE are increasingly exploring tokenization to enhance liquidity and expand investment opportunities. Tokinvest CEO Scott Thiel, a key figure in shaping the country’s digital asset regulations, notes a strong demand from asset owners looking for alternative financing options.
“Everyone wants real estate, and Dubai is one of the hottest markets globally. Tokenization allows more investors to participate in this growth,” Thiel said.
In January, blockchain firm Mantra signed a $1 billion deal to tokenize properties belonging to the UAE’s Damac Group. Mantra later secured a license from the Virtual Asset Regulatory Authority (VARA), further solidifying the UAE’s commitment to regulated digital asset innovation.
Industry leaders believe the UAE’s approach will encourage tokenization beyond real estate, expanding into sectors such as carbon credits and intellectual property. With regulatory support and a digitally native population, the UAE is set to become a global hub for tokenized assets, reshaping how markets operate in the Web3 era.
Meanwhile, Bybit has received an IPA license from the UAE’s Securities and Commodities Authority (SCA), moving closer to full operations. This marks its second regulatory approval in the region as it nears a comprehensive operational license.
