In Dubai, tokenization means converting an asset's ownership or economic rights—whether physical or digital—into blockchain-based tokens. Under UAE regulations, real-world asset tokenization (RWA) applies to real estate, equity, debt, commodities, art, and revenue streams. Digital asset tokenization includes security tokens, utility tokens, NFTs, stablecoins, and other virtual asset types.
1. Feasibility & Valuation: Conduct due diligence and evaluate assets.
2. Corporate Setup: Formulate an SPV as a legal entity within Dubai’s free zones.
3. Licensing: Determine necessary licenses with VARA or DIFC/DFSA.
4. Offer Structuring: Define private placements or STO frameworks.
5. Smart Contracts: Develop and audit contracts according to token standards.
6. Custody Arrangements: Appoint licensed custodians and manage trust structures.
7. Secondary Market Plans: Facilitate listings on authorized exchanges.
8. Compliance Management: Plan for ongoing reporting and regulatory obligations.
Dubai stands out as a hub for tokenization, merging robust regulatory frameworks with a dynamic financial landscape. Adoption of sound legal, tech, and compliance strategies will be key to leveraging its full potential across digital and real-world asset realms.
