Dubaiâs Virtual Assets Regulatory Authority (VARA) granted in-principle approval to Laser Digital, the digital assets arm of Nomura Group, to tokenise its global flagship Laser Carry Fund (LCF). The approval marks the first pilot under the regulatorâs new Asset-Referenced Virtual Assets (ARVA) Framework.
The initiative will create the first institutional-grade Real World Asset (RWA) tokenised product offering under VARAâs framework, giving professional and institutional investors in Dubai access to the fund. Laser Digital is partnering with KAIO as the on-chain partner and Komainu as the regulated custodian for the tokenised fund units.
A new framework for institutional RWA
The approval allows for the creation of the Tokenised LCF (TLCF), where each token represents exposure to a unit of the Laser Digital Carry Fund SP, a Cayman-segregated portfolio. The token will be available on one or more public blockchains through KAIO, while Komainu, a VARA-licensed entity, will act as the custodian.
The tokenised fund units will be tradable on the secondary market and on select VARA-licensed exchanges, a key feature designed to enhance liquidity for investors. The offering is exclusively for professional and institutional investors who meet VARAâs eligibility criteria.
Jez Mohideen, co-founder and chief executive officer of Laser Digital, commented on the regulatory milestone: âThe in-principle approval to launch the first Dubai-native RWA asset management token is a key step in responsibly delivering institutional-grade and composable RWA products to investors. Weâre pleased to launch this product under VARA, building upon our shared commitment to higher governance and robust investor policies in active on-chain asset management.â
Bridging TradFi and DeFi for investors
A primary benefit of tokenising the fund is the increased utility it offers institutional investors. By representing their fund holdings as on-chain tokens, investors can use them as collateral in decentralised finance (DeFi) applications, unlocking new yield and liquidity opportunities. This âcomposabilityâ is a core advantage of bringing traditional financial assets onto blockchain rails.
The Tokenised LCF is the first in a planned series of RWA asset management tokens that Laser Digital intends to build on the VARA ARVA Framework, with future plans to expand the offering to other institutional products.
Matthew White, chief executive officer of VARA, said: âThis partnership between VARA and Laser Digital provides much needed market assurance and certainty to further the convergence between traditional finance and virtual assets, positioning the UAE as a global centre for responsible innovation. Our shared objective is to ensure that this borderless economy is matched by the strength of its regulatory foundations, operating at the nexus of clarity, accountability, and technological advancement.â
Laser Digital, which established its headquarters in Dubai, is a full-service digital asset firm specialising in trading, asset management, and early-stage investing. The firm was established by Nomura to bridge traditional and crypto markets for its institutional clients.
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