Matthew White, CEO of Dubai’s Virtual Assets Regulatory Authority (VARA), recently shared his insights on LinkedIn , highlighting the transformative potential of tokenization in reshaping asset ownership and investment opportunities.
In his post, White reflected on the growing adoption of virtual assets, noting that over 500 million users globally are holding or investing in these assets. He emphasized that tokenization is no longer a concept confined to speculative discussions; instead, it is reshaping industries and unlocking previously untapped potential.
Tokenization to Exceed $500 Billion by 2025
According to White, the tokenization of real-world assets (RWAs) is set to reach unprecedented heights in 2025, with predictions suggesting that the market could surpass $500 billion, excluding stablecoins.
RWAs, including tokenized representations of real estate, debt, equity, and other traditionally illiquid assets, are becoming globally accessible and tradable, democratizing investment opportunities for previously excluded individuals.
White cited a staggering $50 billion in RWAs already tokenised, with over $30 billion attributed to real estate ownership. This rapid growth reflects evolving investor preferences and a growing appetite for tokenised assets.
The Role of Stablecoins in the UAE’s Virtual Asset Ecosystem
Touching on stablecoins, White highlighted the Central Bank of the UAE’s approval of two AED-backed stablecoins last year. These initiatives aim to improve financial transactions and enhance security for both individual and business users. White praised the UAE’s forward-thinking regulatory stance and its commitment to fostering sustainable growth within the finance sector.
Islamic Finance and Tokenization: A $6 Trillion Opportunity
White also underscored the potential of tokenizing Shariah-compliant RWAs, considering the Islamic finance market’s projected growth from $4 trillion to $6 trillion by 2026. He emphasized the significance of blockchain adoption in finance, supply chain management, and public services, advocating for robust regulatory frameworks to support the transition.
Collaboration for a Borderless Digital Economy
In his concluding remarks, White called for collaboration between regulators, financial institutions, and innovators to create a borderless digital economy that balances innovation with security. “Establishing reliable regulatory frameworks will further encourage investment,” he stated, emphasizing the need for collective efforts to realize blockchain’s full potential.
A key milestone for tokenization in the UAE came recently, as VARA granted Tokinvest , a marketplace for real-world asset investing, its full market license. This move solidifies Dubai’s role as a leader in virtual asset innovation. Tokinvest’s platform, now fully licensed, will enable fractionalized investments in high-value assets, further broadening access to previously exclusive investment opportunities.
Matthew White’s perspective aligns with the UAE’s ambitious strategy to position itself as a global leader in blockchain and virtual asset innovation. As the tokenization of RWAs gains momentum, Dubai and the broader UAE remain at the forefront of this transformative shift, setting benchmarks for regulatory excellence and sustainable growth.
