The parent company of Kraken, Payward, has obtained full regulatory approval in Dubai and is now able to offer cryptocurrency trading and financial services to retail, professional, and institutional clients in the United Arab Emirates.
According to a Payward announcement, the Dubai Virtual Assets Regulatory Authority (VARA) has granted Full Market Approval to the company, allowing it to operate as a regulated virtual assets service provider and to begin accepting customers in accordance with the licensing framework of that emirate.
This means that after obtaining preliminary authorization in May 2026, Payward has completed the final regulatory phase. Once launched, Kraken customers in the United Arab Emirates will be able to access their funds in Emirati Dirhams and trade cryptocurrencies in both the spot and margin markets using trading pairs denominated in AED.
Institutional investors will be granted access to over-the-counter spot trading and the use of Kraken Prime. Other supported services include on-chain staking, tokenized stocks provided through xStocks, as well as encrypted transfers using Krak.
Kraken The UAE business progressed after regulatory approval in May
Payward received preliminary approval for VARA in May, which covered the planned brokerage trading, investment, and management services. However, the company still needs to fulfill the remaining requirements of regulatory authorities before starting operations.
As previously reported by crypto.news, the initial authorization enabled Payward to prepare for local operations and complete the necessary regulatory steps before customer onboarding.
Now that Full Market Approval has been obtained, the company can begin to carry out regulated activities within its authorized scope. Payward indicates that the UAE business will connect customers to Kraken's existing trading infrastructure and liquidity network.
Payward, Co-CEO, and Kraken, Co-CEO, stated that customers in the UAE will use the same order book as in the company's other markets.
"Since its launch, customers in the UAE have been able to use the same order book and multi-asset coverage that we offer in all our other markets, and they are under one of the clearest regulatory frameworks in the world," said Sethi.
Payward does not provide a specific date for customers to start using the service in the announcement, but it lists the services that are expected to be offered at the initial launch.
The company also plans to provide its trading infrastructure to other enterprises in the region through embedded trading services. Regional partners will be able to integrate the trading capabilities of Payward into their own financial products.
AED transactions and Kraken Prime constitute the initial service.
Direct support for the UAE Dirham will allow eligible Kraken customers to top up and withdraw funds from their accounts in local currency.
Customers will be able to directly trade cryptocurrency pairs priced at AED, without having to convert their deposits into other fiat currencies outside of the platform first. The announcement does not specify which cryptocurrencies will offer AED trading pairs upon launch.
The approved services will include spot and margin trading, while institutional clients will be able to execute OTC through the Kraken and Prime platforms.
Kraken Prime is aimed at institutional market participants seeking trading and liquidity services. The United Arab Emirates will launch this service to eligible regional customers through the newly authorized business via Payward.
The company has been advancing institutional settlement arrangements in the Gulf region. In October, Payward established a connection with Bank of the Gulf (Singapore) ( Singapore Gulf Bank ), providing 24/7 US dollar settlement services for some institutional customers in Asia and the Gulf region.
Under this arrangement, Bank of Singapore Gulf can use the liquidity of Kraken Prime to price the digital asset transactions for its clients. The initial settlement service supports US dollars, and other currencies are planned to be supported in subsequent phases.
Payward's operations in the United Arab Emirates will separately support Kraken customers to recharge and withdraw funds directly in Dirhams.
Kraken Plans to Launch Derivatives and New Income-Generating Products
Payward is expected to launch cryptocurrency derivatives and more income-producing products later in 2026 and in 2027, provided that additional regulatory approvals are obtained.
The company has not yet announced which derivative contracts will be made available, nor has it provided a timeline for individual products.
In the initial launch phase, eligible customers will be able to use the tokenized stock products of staking and xStocks, which are also the products of Payward.
xStocks The platform offers blockchain-based exposure to stocks and exchange-traded funds. Payward For most of 2026, efforts were focused on developing this product in collaboration with financial institutions and trading infrastructure providers.
In September, Payward and Ledger announced plans to integrate xStocks into their wallets, allowing eligible customers to manage tokenized stocks supported by Ledger's self-hosted services.
At that time, Payward stated that the cumulative trading volume of xStocks had exceeded 42 billion US dollars. Both parties also plan to allow users to buy, sell, and transfer the supported tokenized stocks through Ledger Wallet.
Kraken The existing xStocks services are subject to restrictions in certain jurisdictions. The company has not yet specified which specific tokenized assets or income products UAE customers will be able to use under the new authorization.
Payward Continuously Expands Regulated Financial Services
Before Dubai's approval, Payward continued to develop its trading, tokenization, and financial infrastructure services through a series of investments and collaborations.
In September, NASDAQ agreed to invest $100 million in Payward with a valuation of $21 billion. Both parties agreed to collaborate in tokenized stocks, market monitoring, and blockchain-based settlement infrastructure.
According to this arrangement, Payward plans to use Nasdaq's market monitoring technology at its trading venues, covering cryptocurrencies, stocks, futures, options, and tokenized securities. Both parties expect Nasdaq Equity Tokens to be launched in the second quarter of 2027.
Payward is also advancing bank cooperation beyond its trading business. In October, there were reports that the company was discussing potential arrangements with BNY and Wells Fargo, involving services such as cryptocurrency trading, custody, payment, and institutional liquidity. However, none of these proposed arrangements have been confirmed as having concluded agreements yet.
According to its UAE announcement, the company currently holds over 100 licenses and registrations in Europe, the Americas, the Asia-Pacific region, and the Middle East.
Dubai has issued licenses to several other crypto companies in accordance with the regulatory framework of VARA. In August, Flowdesk obtained full brokerage dealer authorization for its Dubai entity, allowing it to provide services to qualified and institutional investors.
Payward's approval covers retail, professional, and institutional investors, however, the availability of individual products still depends on the specific licensing and regulatory requirements applicable to each service.
