Dubai approves first institutional RWA token under ARVA framework

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Artem Shendetskii

16.10.2025

Dubai approves first institutional RWA token under ARVA framework — Dubai grants Nomura’s Laser Digital green light for RWA tokenization

Nomura Group’s Laser Digital has received in-principle approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to tokenize its Laser Carry Fund (LCF) under the pilot ARVA Framework.

The approval marks a major step in the integration of real-world asset (RWA) tokenization into regulated institutional finance, reports Cryptopolitan.

Once fully licensed, the Tokenized Laser Carry Fund (TLCF) will become the first institutional-grade RWA tokenized product under VARA. Each TLCF token will represent exposure to tokenized units of the Laser Digital Carry Fund SP, a Cayman Segregated Portfolio.

The tokens will be available on the KAIO blockchain, with Komainu serving as the VARA-licensed custodian. According to Laser Digital, the fund will be accessible only to institutional investors meeting VARA’s eligibility standards. The tokens will also be tradable on secondary markets via VARA-approved exchanges, enhancing liquidity and market participation. Jez Mohideen, Laser Digital’s co-founder and CEO, said the approval underscores the company’s commitment to building “institutional-grade and composable RWA products” within a high-governance framework. Pricing will be tied to LCF’s net asset value, and both subscriptions and redemptions will take place during pre-set trading windows.

VARA’s ARVA framework accelerates RWA innovation

The TLCF token is the first in a planned series of institutional RWA asset management tokens built within VARA’s ARVA regulatory framework, signaling Dubai’s continued efforts to position itself as a global hub for digital finance and asset tokenization. The ARVA (Asset and Real-World Value Architecture) initiative enables financial institutions to tokenize regulated funds while maintaining compliance with investor protection and governance requirements. Laser Digital’s approval marks a tangible example of VARA’s strategy to merge traditional financial structures with blockchain transparency.

Dubai’s move comes amid a broader wave of RWA adoption across the Middle East. In March 2025, QNB Group, Standard Chartered, and DMZ Finance launched the QCD Money Market Fund (QCDT) — the first regulated tokenized money market fund under the Dubai International Financial Centre (DIFC) framework. The initiative established a precedent for how traditional banks can tokenize assets while remaining fully compliant with international regulations.

Middle East embraces tokenized finance ecosystems

The momentum around RWA tokenization is spreading throughout the region. In Bahrain, the Central Bank of Bahrain (CBB)-licensed ATME exchange introduced a regulated platform for tokenized investment products, allowing brokers and asset managers to issue and trade directly on-chain. Meanwhile, Nasdaq-listed DeFi Technologies has expanded into the UAE to offer digital asset exchange-traded products (ETPs) and tokenized equities, reflecting the growing institutional appetite for blockchain-based asset management.

As VARA continues to approve more tokenized financial products, Dubai is solidifying its position as the regulatory leader for blockchain finance in the MENA region. The collaboration between Nomura’s Laser Digital, Komainu, and KAIO sets a new benchmark for compliant, large-scale RWA tokenization — bridging the gap between traditional asset management and on-chain liquidity in global finance.

Recently we wrote that the Dubai Virtual Assets Regulatory Authority (VARA) has intensified its oversight of the emirate’s digital asset ecosystem, imposing sanctions on 19 crypto firms for operating without a license and violating VARA’s marketing rules.

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