DMCC and VARA Partner to Advance Global Tokenized Commodities Framework
Dubai Multi Commodities Centre (DMCC), the first free zone in the UAE to embrace crypto back in 2017–2018 and the only destination for digital asset companies at the time, has announced a strategic partnership with the Dubai Virtual Assets Regulatory Authority (VARA) to accelerate global infrastructure for tokenized commodities.
The agreement represents a pivotal milestone in Dubai’s digital asset journey, combining DMCC’s commodities expertise and expansive member network with VARA’s regulatory oversight. Together, the two entities aim to create a secure, transparent, and scalable framework for tokenizing physical commodities such as gold and diamonds – bridging traditional markets with blockchain-powered financial systems.
Pilot Projects and Investor Protection
As part of the partnership, pilot projects will be launched to explore the secure tokenization and trading of commodities on blockchain platforms. These initiatives will assess market viability, technical and regulatory requirements, and investor protections. Insights from these pilots will shape practical, investable tokenization models that can be integrated into mainstream finance.
Education and awareness will also play a central role. DMCC and VARA plan to roll out joint workshops, seminars, and awareness initiatives designed to raise institutional and public understanding of tokenization, covering its benefits, risks, and regulatory aspects.
Setting Global Benchmarks for Tokenization
Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, emphasized the significance of the collaboration:
“Partnering with VARA is a pivotal step in the evolution of Dubai’s digital-asset landscape. By combining VARA’s world-class regulatory oversight with DMCC’s 26,000-member community and unmatched expertise in commodities, blockchain, and Web3, we are creating a secure, scalable framework to tokenize assets such as gold, diamonds, and other high-value commodities.”
Matthew White, CEO of VARA, added:
“Dubai has long been where global trade meets global innovation and tokenization is the next chapter in that story. By working with DMCC, we are bringing together deep commodities expertise with regulatory foresight to create a framework that can turn tokenized assets from concept into trusted market infrastructure.”
DMCC Crypto Centre Momentum
The announcement comes as DMCC’s Crypto Centre continues to gain strong traction, with hundreds of Web3 companies establishing operations there, making it one of the region’s premier hubs for blockchain innovation. The Centre recorded a 38% year-on-year increase in registered crypto companies, reflecting the growing appeal of Dubai as a destination for digital assets.
While the ecosystem continues to mature, recent enforcement actions also highlighted that some of the companies fined by authorities were based in DMCC. However, this underscores the importance of the new partnership with VARA, which is designed to ensure robust regulatory frameworks, investor protection, and greater market integrity.
Strengthening Dubai’s Digital Asset Ecosystem
The agreement extends beyond tokenization pilots, covering collaboration in aggregated data sharing, sector analysis, and economic impact reporting. DMCC will provide market insights and benchmarks to inform VARA’s regulatory design, ensuring a data-driven approach that balances innovation with oversight.
With nearly 26,000 member companies contributing 15% of Dubai’s foreign direct investment and 7% of its GDP, DMCC remains central to the emirate’s economy. This new partnership with VARA positions Dubai at the forefront of global efforts to merge physical commodities with digital asset infrastructure, reinforcing its role as a global hub for trade and innovation.
