QNB Group, Standard Chartered, and DMZ Finance have announced the launch of the first regulated tokenized money market fund in the Dubai International Financial Centre, called the QCD Money Market Fund (QCDT Units). QNB Group will manage the fund’s core investments, while DMZ Finance will serve as a key participant and exclusive provider of the tokenization infrastructure. Capricorn Investment Management has been appointed as the fund manager. Standard Chartered, as a leading global bank, will act as the custodian for the QCD Money Market Fund, offering its digital asset custody services officially launched in 2024.
Strong Advantages
The QCD Fund is the first tokenized money market fund regulated in Dubai International Financial Centre, providing significant advantages in regulatory compliance, transparency, security, liquidity, and competitive positioning. QNB has designated QCDT units as qualified collateral, with plans for further recognition as matching collateral by several major global exchanges. This development is a pivotal move towards bridging traditional finance (TradFi) with decentralized finance (DeFi).
Silas Lee, CEO of QNB Singapore, stated, “The official launch of QCDT units marks a significant advancement in utilizing blockchain technology to enable investors to seamlessly integrate high-yield assets from traditional finance into the digital economy. The fund combines the stability of traditional instruments, such as short-term U.S. Treasury bonds and U.S. dollar deposits, with the advantages of digitization, leading to greater liquidity and transparency and enabling their use as collateral in smart contracts for trading, financing, and lending.”
Regulatory Framework
Rolla Abou Mehn, CEO of Standard Chartered in the UAE, Middle East, and Pakistan, added, “The launch of QCDT represents a significant achievement for the financial sector in the UAE, reinforcing its position as a global hub for innovation in regulated digital assets. With the regulatory framework provided by the Dubai International Financial Centre, this initiative supports the country’s ambitions to lead in the development of tokenized markets. As the custodian of the fund’s assets, Standard Chartered is committed to offering the reliable infrastructure trusted by investors worldwide and facilitating the integration of traditional and digital finance.” Nathan Ma, co-founder and Chairman of DMZ Finance, remarked, “As the first fund under the QCD umbrella, QCDT effectively connects exchanges and institutional investors. Through the precise segregation of assets and close collaboration with banking partners, the fund efficiently meets liquidity demands and has already begun attracting prominent institutions and listed companies since its launch.”