QNB and DMZ Finance Launch First Tokenized Money Market Fund in Dubai

The Dubai Financial Services Authority (DFSA) has granted approval to the QCD Money Market Fund (QCDT), a joint venture between Qatar National Bank (QNB) and DMZ Finance. This fund is the first of its kind in the region, marking a significant milestone in the digital asset finance space. The fund will be based in the Dubai International Financial Centre (DIFC), with QNB responsible for asset origination and investment strategy, while DMZ Finance will manage the underlying blockchain infrastructure.

The QCDT fund is designed to bring traditional financial instruments, such as U.S. Treasuries, onto the blockchain. This tokenization enables a variety of use cases, including stablecoin reserves, Web3 payment systems, exchange collateral, and institutional liquidity tools. The approval of this fund underscores the Middle East's growing leadership in the tokenization of real-world assets (RWAs).

Nathan Ma, Co-Founder and Chairman of DMZ Finance, highlighted the importance of this development, stating that the tokenization of real-world assets is becoming a crucial bridge between traditional capital markets and the digital asset economy. This move aligns with a broader trend where jurisdictions like Dubai and Doha are emerging as early leaders in the RWA tokenization market. According to a joint study by Ripple and BCG, the RWA tokenization market could reach significant heights by 2033, with Dubai and Doha at the forefront.

QNB, the largest bank in the region, is leveraging its extensive institutional reach, while DMZ Finance, part of Qatar’s Digital Lab cohort, is working to integrate tokenization into the local financial infrastructure. Silas Lee, CEO of QNB Singapore, emphasized that 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. He noted that it marks a new phase in their strategic roadmap and lays a strong foundation for the future of multi-asset tokenization.

The partnership between QNB and DMZ Finance exemplifies a broader shift in how banks and fintech platforms are collaborating to reshape finance through compliant digital instruments. This move comes as the UAE continues to position itself as a regional hub for blockchain innovation and crypto finance, with regulatory clarity attracting major global players. The UAE's efforts to create a favorable environment for crypto and stablecoin ventures are expected to continue, as the region seeks to become a key destination for firms looking to escape stringent regulations elsewhere.