Kraken wins full VARA approval in Dubai, with direct dirham deposits and tokenized stocks planned for UAE clients

Dubai’s Virtual Assets Regulatory Authority has granted Kraken’s parent company, Payward, full market approval, clearing it to serve retail, professional and institutional clients in the UAE.

The exchange plans to offer spot and margin trading, direct dirham deposits and withdrawals, staking, tokenized stocks through xStocks and institutional services via Kraken Prime. Payward has not set a launch date.

Arjun Sethi, Payward and Kraken’s co-CEO, highlighted the exchange’s trading infrastructure as a central part of the rollout.

“From launch, clients in the UAE get the same order book and multi-asset coverage we run in every other market, under one of the clearest regulatory frameworks in the world,” Sethi said.

Payward has not announced a specific customer launch date. However, the approval moves its UAE expansion beyond preliminary authorization and closer to commercial operations.

AED Deposits and institutional trading take center stage

One of the most important features of the planned launch is direct support for the UAE dirham. Eligible customers will be able to deposit and withdraw AED and trade supported cryptocurrencies through dirham-denominated pairs.

This arrangement could simplify access for local traders by reducing the need to convert funds into another currency before purchasing digital assets. However, Payward has not disclosed the complete list of cryptocurrencies that will be available against the dirham at launch.

The Kraken Dubai VARA Approval also creates a regulated route for institutional clients seeking access to cryptocurrency liquidity and execution services. Eligible professional market participants will be able to use over-the-counter spot trading and Kraken Prime, Payward’s institutional trading platform.

The company is also planning to make its trading infrastructure available to regional businesses through embedded services. These integrations could allow partners to incorporate cryptocurrency trading capabilities into their own financial products rather than build an exchange infrastructure from scratch.

Payward has been developing institutional financial connections in the Gulf. In October, the company and Singapore Gulf Bank announced a settlement arrangement supporting round-the-clock US dollar settlement for selected institutional customers across Asia and the Middle East.

That service uses Kraken Prime liquidity to support digital asset trading and initially focuses on US dollars, with other currencies planned for later phases. The UAE rollout is a separate development that will support direct dirham funding and withdrawals for eligible Kraken customers.

Together, these initiatives show how Payward is developing services that connect cryptocurrency markets with established financial infrastructure.

Staking, tokenized equities and derivatives on the roadmap

Beyond conventional cryptocurrency trading, Payward intends to introduce several additional products in the UAE. The initial offering is expected to include on-chain staking and xStocks, its tokenized equity product, subject to the permissions applicable to each service.

Tokenized equities use blockchain-based tokens to provide exposure to shares or other securities-related assets. Their availability, ownership rights and regulatory treatment can differ from those of conventional stocks, so customers should not automatically assume that every token carries the same rights as a directly held share.

Payward has continued developing xStocks through partnerships with financial and technology companies. In September 2026, the company and Ledger outlined plans for integrating supported tokenized equities into Ledger Wallet, giving eligible users another way to manage and transfer these assets.

Payward previously reported that xStocks had processed more than $42 billion in cumulative transaction volume. That figure was a company-reported milestone, not a guarantee of future demand or performance.

The Kraken Dubai VARA Approval does not, by itself, establish that every xStocks asset or yield product will be offered to UAE residents. Availability will depend on the specific products, local restrictions and applicable regulatory permissions.

Payward also plans to introduce cryptocurrency derivatives and additional yield products later in 2026 and during 2027, subject to further regulatory approval. The company has not specified the contracts involved or provided individual release dates.

For now, the initial rollout is centered on spot and margin markets, local-currency funding, staking, tokenized equities and institutional execution.

Payward expands its global regulatory footprint

The Dubai authorization adds to Payward’s wider international expansion. According to the company’s announcement, it holds more than 100 licenses and registrations worldwide, spanning markets across Europe, the Americas, Asia-Pacific and the Middle East.

The Kraken Dubai VARA Approval also comes amid Payward’s broader efforts to develop trading, tokenization and settlement infrastructure beyond its core cryptocurrency exchange business.

In September 2026, Nasdaq agreed to invest $100 million in Payward at a reported valuation of $21 billion. The companies also outlined plans to collaborate on tokenized equities, market surveillance and blockchain-based settlement infrastructure, including a proposed Nasdaq Equity Tokens launch in the second quarter of 2027.

Payward has also explored banking relationships to support cryptocurrency custody, payments, trading and institutional liquidity. Such discussions should be distinguished from completed partnerships or operational services unless the parties confirm otherwise.

Dubai, meanwhile, continues to develop a regulatory framework for virtual asset businesses. VARA authorization provides a formal route for approved firms to operate within the activities and conditions specified by the regulator, rather than offering unrestricted permission to provide every cryptocurrency-related service.

For UAE customers, the immediate significance of the Kraken Dubai VARA Approval is the prospect of accessing Kraken’s trading infrastructure with local-currency support under Dubai’s regulatory framework. The longer-term impact will depend on the actual launch, the products made available, customer demand and the additional permissions required for future services.