Kraken parent Payward wins full Dubai crypto license
In this article
Payward, the parent company of crypto exchange Kraken, has secured a Virtual Asset Service Provider license for its Dubai entity, Payward FZCO, after Dubai’s Virtual Assets Regulatory Authority granted Full Market Approval.
The approval follows a preliminary authorization in May 2026, when Payward began preparing its local operations ahead of client onboarding. The full license clears the final regulatory step and allows the company to begin the activities covered by its authorization. Payward now holds more than 100 licenses and registrations across Europe, the Americas, Asia-Pacific and the Middle East, according to the company’s announcement. Cointelegraph reported that the regulator’s public register shows the VASP license was issued on Oct. 6.
What Kraken customers in the UAE get at launch
Payward has not named a specific customer launch date, but it has outlined the initial service set. Direct support for the UAE dirham means eligible customers can fund and withdraw in the local currency and trade AED pairs without converting deposits into another fiat currency outside the platform. The announcement did not identify which cryptocurrencies will receive AED trading pairs.
Institutions will be routed to over-the-counter execution and Kraken Prime, the platform’s service for institutional market participants. Payward co-CEO Arjun Sethi said clients in the UAE would use the same order book available across the company’s other markets, describing the framework as one of the clearest regulatory frameworks in the world.
The UAE rollout also connects to Payward’s existing trading infrastructure and liquidity network. The company plans to offer embedded trading services so regional partners can integrate its trading capabilities into their own financial products.
Derivatives, xStocks and the wider 2026 build-out
Crypto derivatives and additional yield products are planned for later in 2026 and into 2027, subject to further regulatory approvals. Payward has not said which contracts will be offered or set a timetable for individual products.
Tokenized equities are part of the first wave. Payward’s xStocks offering provides blockchain-based exposure to shares and exchange-traded funds, and in September the company and Ledger outlined plans for xStocks wallet integration through Ledger’s self-custody service. Payward said then that xStocks had processed more than $42 billion in cumulative transaction volume. Existing xStocks services carry jurisdiction-specific restrictions, and the company has not detailed which tokenized assets will reach UAE customers under the new authorization.
The build-out extends beyond the UAE. 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, with other currencies planned for later phases. In September, Nasdaq agreed to invest $100 million in Payward at a reported $21 billion valuation, with the companies working on tokenized equities, market surveillance and blockchain-based settlement infrastructure; Nasdaq Equity Tokens are expected to launch in the second quarter of 2027. Reports in October also indicated Payward was discussing potential arrangements with BNY and Wells Fargo covering trading, custody, payments and institutional liquidity, though neither had been confirmed as a completed agreement.
Why it matters
The license gives one of the largest global exchanges a regulated path into the Gulf’s retail and institutional market, rather than serving UAE customers from offshore entities. It also puts Payward alongside banks and brokers expanding under the UAE’s separate regulatory regimes. Cointelegraph reported that Standard Chartered launched spot Bitcoin and Ether trading for institutional clients in the UAE in September through its Dubai International Financial Centre branch, regulated by the Dubai Financial Services Authority, and that Capital.com revealed plans for spot crypto services in August after affiliate Capital Vault secured a virtual-asset license from the country’s Capital Market Authority. Cointelegraph added that VARA’s register now lists 58 licensed providers, up from 49 active companies in May 2026. The two reports agree on the substance of the approval; neither outlet named a firm launch date.
What to watch
The immediate question is Payward’s actual customer onboarding date, which the company says is weeks away. Also unresolved: which cryptocurrencies get AED pairs, which tokenized assets UAE clients can access, and whether the planned derivatives and yield products clear their own regulatory approvals in 2026 and 2027.
Frequently Asked Questions
What does Kraken’s Dubai license actually allow?
Payward FZCO can act as a regulated Virtual Asset Service Provider offering broker-dealer, management and investment services to retail, professional and institutional investors, with direct AED deposits and withdrawals at launch.
Which products launch first for UAE customers?
Spot and margin trading in dirham-denominated pairs, on-chain staking, tokenized equities through xStocks, crypto transfers via Krak, and OTC plus Kraken Prime access for institutions. Payward has not named the specific AED pairs.
When will crypto derivatives reach Kraken’s UAE users?
Payward says derivatives and additional yield products are planned for later in 2026 and 2027, subject to further regulatory approvals, with no product timetable announced.
How many crypto firms does VARA license in Dubai?
Cointelegraph reports Dubai’s VARA register currently lists 58 licensed providers, up from 49 active companies in May 2026.
Sources: crypto.news, Cointelegraph
