Dubai has approved the QCD Money Market Fund (QCDT), the first tokenized money market fund in the Dubai International Financial Centre (DIFC), marking a major milestone in the region's digital finance ambitions.

QCDT demonstrates effective regulation with secure storage, transparent blockchain tracking, and stable rewards, serving as a regional model for tokenized funds.

The QCDT fund aims to bring traditional assets like U.S. Treasuries onto the blockchain, supporting institutional applications such as bank-eligible collateral and Web3 payment infrastructure.

Backed by Qatar National Bank (QNB) and DMZ Finance, the fund leverages QNB's investment strategy and DMZ's underlying technology, with Dubai and neighboring regions actively developing regulatory frameworks and pilot schemes to foster digital finance innovation.

The fund offers benefits like on-chain transparency, custody standards, regulatory compliance, and the ability to serve as bank-eligible collateral and stablecoin backing, setting a new standard for digital financial products.

DMZ Finance’s co-founder Nathan Ma emphasized that asset tokenization creates a secure, open bridge between traditional banking and the digital economy, aiming to connect old and new markets.

Industry experts see tokenized real-world assets (RWAs) as a bridge between traditional regulation and decentralized finance, with the market potentially reaching at least $18.9 trillion by 2033.

Future uses for QCDT include serving as collateral for banks, reserves for crypto exchanges, and backing stablecoins, which could enable new payment systems within the Web3 ecosystem.

A report by Ripple and BCG forecasts the tokenized RWA market could reach nearly $19 trillion by 2033, with Dubai and Doha positioned as leaders in this transformative shift.

QNB’s CEO in Singapore, Silas Lee, highlighted the approval as a milestone for QNB’s digital strategy and a step toward establishing Dubai as a global hub for financial innovation.