Kraken’s parent company Payward has secured full regulatory approval in Dubai to launch cryptocurrency trading and financial services for retail, professional and institutional customers in the United Arab Emirates.
Summary
- Kraken parent Payward has received full market approval from Dubai’s VARA, allowing it to serve retail, professional and institutional investors in the UAE.
- Kraken customers will be able to trade spot and margin pairs in UAE dirhams, with direct AED deposits and withdrawals available at launch.
- The initial offering will include onchain staking, tokenized equities through xStocks and institutional trading services through Kraken Prime.
- Payward plans to introduce crypto derivatives and additional yield products later in 2026 and 2027, subject to regulatory approval.
- The approval follows preliminary clearance in May 2026, with Payward now holding more than 100 licenses and registrations worldwide.
According to an announcement from Payward, Dubai’s Virtual Assets Regulatory Authority (VARA) has granted the company Full Market Approval, allowing it to operate as a regulated Virtual Asset Service Provider and begin onboarding clients under the emirate’s licensing framework.
The approval clears the final regulatory stage after Payward received preliminary authorization in May 2026. At launch, Kraken customers in the UAE will be able to deposit and withdraw funds in UAE dirhams and trade cryptocurrencies through spot and margin markets using AED-denominated pairs.
Institutional investors will receive access to over-the-counter spot trading and Kraken Prime, while other supported services will include on-chain staking, tokenized equities through xStocks and crypto transfers using Krak.
Kraken UAE launch follows May regulatory clearance
Payward’s preliminary VARA approval in May covered planned broker-dealer, investment and management services, although the company still needed to complete the regulator’s remaining requirements before starting operations.
As crypto.news previously reported, the initial authorization allowed Payward to prepare its local operations and complete the necessary regulatory steps ahead of customer onboarding.
Full Market Approval now permits the company to begin the regulated activities covered by its authorization. Payward said the UAE offering will connect customers to Kraken’s existing trading infrastructure and liquidity network.
Arjun Sethi, co-CEO of Payward and Kraken, said customers in the UAE would use the same order book available across the company’s other markets.
“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 specified an exact customer launch date in the announcement, but outlined the services it expects to introduce during the initial rollout.
The company plans to make its trading infrastructure available to other businesses in the region through embedded trading services. Regional partners would be able to integrate Payward’s trading capabilities into their own financial products.
AED trading and Kraken Prime form the initial offering
Direct support for UAE dirhams will allow eligible Kraken customers to fund their accounts and withdraw funds in the local currency.
Customers will be able to trade AED-denominated cryptocurrency pairs without first converting their deposits into another fiat currency outside the platform. The announcement did not identify which cryptocurrencies would receive AED trading pairs at launch.
Spot and margin trading will be available under the approved services, while institutional customers will have access to OTC execution through Kraken and its Prime platform.
Kraken Prime serves institutional market participants seeking trading and liquidity services. The UAE rollout will bring that offering to eligible regional customers through Payward’s newly authorized operations.
The company has already been developing institutional settlement arrangements in the Gulf. In October, Payward connected with Singapore Gulf Bank to provide round-the-clock U.S. dollar settlement for selected institutional customers across Asia and the Gulf.
Under that arrangement, Singapore Gulf Bank can use Kraken Prime liquidity to price digital asset trades for its customers. The initial settlement service supports U.S. dollars, with other currencies planned for later phases.
Payward’s UAE operations will separately support direct dirham funding and withdrawals for Kraken customers.
Kraken plans derivatives and new yield products
Payward expects to introduce cryptocurrency derivatives and more yield products later in 2026 and during 2027, subject to additional regulatory approvals.
The company has not announced which derivatives contracts will become available or provided a timetable for individual products.
For the initial rollout, eligible customers will have access to on-chain staking and xStocks, Payward’s tokenized equity offering.
The xStocks platform provides blockchain-based exposure to shares and exchange-traded funds. Payward has spent much of 2026 developing the product through partnerships with financial institutions and trading infrastructure providers.
In September, Payward and Ledger introduced plans for xStocks wallet integration, allowing eligible customers to manage supported tokenized equities using Ledger’s self-custody services.
Payward said at the time that xStocks had processed more than $42 billion in cumulative transaction volume. The companies outlined plans for users to buy, sell and transfer supported tokenized shares through Ledger Wallet.
Kraken’s existing xStocks services are subject to jurisdiction-specific restrictions. The company has not detailed which individual tokenized assets or yield products will be available to UAE customers under its new authorization.
Payward has expanded its regulated financial operations
The Dubai approval follows a series of investments and partnerships through which Payward has developed its trading, tokenization and financial infrastructure businesses.
In September, Nasdaq agreed to invest $100 million in Payward at a reported valuation of $21 billion. The companies agreed to work on tokenized equities, market surveillance and blockchain-based settlement infrastructure.
Under the arrangement, Payward plans to use Nasdaq’s market surveillance technology across its trading venues, including cryptocurrency, equities, futures, options and tokenized securities. The companies expect Nasdaq Equity Tokens to launch in the second quarter of 2027.
Payward has pursued banking partnerships alongside its trading operations. In October, reports indicated that the company was discussing potential arrangements with BNY and Wells Fargo covering services such as cryptocurrency trading, custody, payments and institutional liquidity. Neither proposed arrangement had been confirmed as a completed agreement.
The company currently holds more than 100 licenses and registrations across Europe, the Americas, Asia-Pacific and the Middle East, according to its UAE announcement.
Dubai has granted licenses to several other cryptocurrency businesses under VARA’s regulatory framework. In August, Flowdesk received full broker-dealer authorization for its Dubai entity, permitting services to qualified and institutional investors.
Payward’s approval covers retail, professional and institutional investors, although the availability of individual products remains subject to the permissions and regulatory requirements applicable to each service.