The Dubai Financial Services Authority (DFSA) has given the go-ahead to the QCD Money Market Fund (QCDT) in a recent announcement. This tokenized money market fund is a collaboration between Qatar National Bank (QNB) and DMZ Finance and will be operational within the Dubai International Financial Centre.
DMZ Finance will co-originate and equip the project with a specialized tokenization technology infrastructure. On the other hand, QNB will take on the responsibility of leading fund origination and investment management, according to Monday’s press release.
QCDT is engineered to facilitate various institutional applications in the financial sector. Institutions, for example, can employ QCDT as qualifying collateral, and centralized exchanges can use it as collateral. Furthermore, the fund can act as a backing reserve for stablecoins and serve as a fundamental layer for Web3 payment systems.
Silas Lee, CEO of QNB Singapore, said in the statement, “QCDT is not only the first DFSA-approved tokenized money market fund in Dubai but also a significant stride in QNB’s digital asset journey. As the Middle East swiftly becomes a global epicenter for financial innovation, the successful launch of QCDT strengthens QNB’s position in the regional financial ecosystem and is a reflection of our long-term vision to shape the future of financial infrastructure.”
Earlier in May, the Department of Finance of Dubai city inked a Memorandum of Understanding with Crypto.com to integrate cryptocurrency as a method of payment for government services. In addition, last month, the DFSA sanctioned RLUSD, Ripple’s U.S. dollar-pegged stablecoin, as a payment medium within the Dubai International Financial Centre.
Disclaimer: This article is only for informational purposes. It is not intended to be used as legal, tax, investment, financial, or other advice.
