Securitize Tokenizes Roubini's ETF as Dubai VARA Digital Security
Securitize has been selected to wrap economist Nouriel Roubini's SEC-registered Atlas America Fund into a digital security called USAFi under Dubai's VARA regulatory framework. The tokenized fund will use BNY Mellon as custodian and enable 24/7 institutional-grade collateral portability.
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Tokenization Under Dubai VARA
Securitize has been selected to tokenize an SEC-registered ETF linked to economist Nouriel Roubini into USAFi, a digital security issued under Dubai's Virtual Asset Regulatory Authority (VARA) framework. The arrangement pairs Dubai's regulatory designation with BNY Mellon custody, according to reporting from The Defiant.
The tokenized wrapper is designed to enable 24/7 institutional-grade collateral portability, allowing the underlying Atlas America Fund to function as on-chain collateral across trading venues and protocols without traditional market hours constraints.
Securitize's Role and Structure
Securitize, which operates as a digital asset issuance and servicing platform, has positioned the USAFi token as a bridge between traditional SEC-regulated fund structures and on-chain institutional infrastructure. The use of BNY Mellon as custodian signals backing from a major incumbent financial institution, a requirement that institutional investors typically demand for tokenized traditional assets.
This marks a notable test case for how established regulatory frameworks outside the U.S.—in this case Dubai's VARA licensing regime—can accommodate the tokenization of U.S. SEC-registered securities without requiring secondary U.S. regulatory approval for the digital wrapper itself.
Why It Matters
For Traders
USAFi tokenization enables collateral use during off-hours, potentially reducing funding costs and settlement friction for strategies that depend on the underlying fund.
For Investors
The structure demonstrates a viable playbook for U.S. SEC-registered assets to access on-chain institutional infrastructure without requiring domestic regulatory approval for the token layer.
For Builders
DeFi protocols can now accept a major custodian-backed digital security as collateral, reducing counterparty and regulatory risk relative to unsecured or less-established wrapped assets.
This article is for information only and is not financial advice. Read the full disclaimer.
