DMCC and Tether advance Dubai tokenisation push

Dubai’s DMCC has signed a strategic memorandum of understanding with Tether, the issuer of the USDT stablecoin, to expand collaboration in blockchain infrastructure, digital assets and tokenised finance, placing one of the world’s largest stablecoin operators deeper inside the emirate’s fast-growing digital trade ecosystem.

The agreement, announced on 16 June, sets out a framework for Tether to work with DMCC on blockchain-based communication and payment infrastructure, advisory support for tokenisation, crypto payments and digital asset settlements. It also creates a pathway for the two organisations to become ecosystem partners across relevant events, publications and member-facing channels.

The move links Tether with a business district that hosts more than 26,000 member companies, including more than 4,000 technology firms. DMCC, which oversees one of Dubai’s main commodities and enterprise hubs, has been positioning its Crypto Centre as a bridge between physical trade, financial services and Web3 infrastructure.

Under the MoU, Tether is expected to engage with DMCC’s member network through education programmes, industry events, hackathons and knowledge-sharing sessions. The initiative is also designed to explore potential member benefits and practical business applications for digital settlement tools, rather than limiting cooperation to policy-level engagement.

Ahmed Bin Sulayem, DMCC’s Executive Chairman and Chief Executive Officer, said global trade was entering an era in which payments, financial infrastructure and asset ownership were moving onto “digital rails”. He said stablecoins were already processing trillions of dollars in transaction value, while tokenisation was beginning to reshape how real-world assets are financed and transferred across borders.

Paolo Ardoino, Tether’s Chief Executive Officer, said the UAE was shaping how digital asset infrastructure is adopted in global markets and connected with “real economic activity”. He said the collaboration with DMCC would focus on practical blockchain use cases, including tokenisation, education and tools that widen participation in digital markets.

The partnership comes as Dubai sharpens its role as a regulated centre for virtual assets. The emirate’s Virtual Assets Regulatory Authority oversees virtual asset activity across Dubai’s mainland and free zones, excluding the Dubai International Financial Centre, while the Central Bank’s Payment Token Services Regulation has set national rules for stablecoins used as payment instruments.

DMCC has already deepened its engagement with regulators and market participants on tokenised trade. Its earlier agreement with the Dubai Virtual Assets Regulatory Authority focused on tokenised commodities, industry data and policy development, with an emphasis on gold, diamonds and other real-world assets that can be represented digitally under controlled frameworks.

Tether’s entry into this layer of Dubai’s commercial ecosystem is significant because USDT remains the dominant dollar-linked stablecoin used by crypto exchanges, traders and payment intermediaries. Stablecoins are designed to maintain a steady value against fiat currencies and are increasingly being tested for cross-border settlement, treasury management and digital commerce.

The company’s latest reserve figures underline its scale. Tether reported first-quarter net profit of $1.04bn, total assets of about $191.7bn and liabilities of about $183.5bn, with an excess reserve buffer of $8.23bn. Its reserves remain heavily exposed to US Treasury instruments, alongside holdings in gold and bitcoin.

That scale also brings scrutiny. Tether publishes quarterly attestations of reserves, but those are not the same as a full financial audit. Regulators and central bankers have warned that stablecoins can pose risks around liquidity, consumer protection, illicit finance and market fragmentation if oversight differs sharply across jurisdictions.

For Dubai, the DMCC-Tether MoU fits a broader strategy to connect commodities, capital and technology. The emirate has sought to attract exchanges, custodians, fintech platforms and blockchain developers while building rules intended to reassure institutions that digital asset activity can be conducted under formal supervision.

The immediate impact is likely to be educational and exploratory rather than a direct launch of new financial products. The wording of the MoU points to workshops, advisory engagement, hackathons and potential ecosystem benefits, leaving commercial deployment subject to regulatory approvals, business demand and risk controls.

Arabian Post – Crypto News Network