Payward, the holding company behind Kraken, has obtained comprehensive authorization from Dubai’s Virtual Asset Regulatory Authority, clearing the path for a full-scale entry into the United Arab Emirates.
Licensing approval and regulatory backdrop
The regulator’s final sign-off follows an initial clearance granted in May, which allowed Payward to establish its operational infrastructure ahead of client onboarding. With the latest approval, the firm can now function as a regulated virtual-asset service provider, catering to retail, professional and institutional participants.
Services slated for the UAE market
When the platform goes live, customers in the Emirates will be able to execute spot and margin trades using pairs quoted in the local dirham, as well as deposit and withdraw funds in the same currency. Additional offerings will include on-chain staking, access to tokenized equities under the xStocks brand, and the Krak transfer tool for moving crypto assets. Institutional participants will gain OTC spot execution and access to Kraken Prime, the exchange’s prime brokerage service. The rollout also anticipates the introduction of crypto derivatives and new yield-generating products later in 2026 and into 2027, pending further regulatory clearance.
Global footprint and recent strategic partnerships
Payward’s licensing portfolio already spans more than a hundred jurisdictions across Europe, the Americas, Asia-Pacific and the Middle East. In recent months the company secured a $100 million investment from Nasdaq, valuing Payward at $21 billion, and will distribute Nasdaq’s tokenized stocks on Kraken’s platform. A separate agreement with SoFi Technologies will route SoFi customers’ crypto orders through Kraken Prime and list SoFi’s stablecoin on the exchange, further cementing Payward’s bridge between traditional finance and digital assets.
Timeline and next steps
The exchange plans to commence operations in the UAE shortly after the announcement, with the core spot and margin functionalities available at launch. Derivatives and additional yield products are slated for release in the latter half of 2026 and into the following year, contingent on meeting any further regulatory requirements.
Why it matters
Securing a full license in Dubai positions Payward as one of the few globally-active crypto firms with explicit regulatory clearance in the Gulf region, a market poised for rapid digital-asset adoption. The move also underscores the broader trend of crypto platforms integrating traditional financial products, a strategy reinforced by recent capital inflows from Nasdaq and partnership with SoFi. For investors and institutions in the Middle East, the launch promises regulated access to a wide array of crypto services, potentially accelerating the region’s participation in the global digital-asset ecosystem.
