Payward, the parent company of crypto exchange Kraken, has secured a Virtual Asset Service Provider (VASP) license for its Dubai entity, Payward FZCO, after receiving Full Market Approval from Dubai’s Virtual Assets Regulatory Authority (VARA). The license was issued on Oct. 6, 2026, enabling Payward to serve retail, professional, and institutional clients in the UAE with dirham-denominated spot and margin trading, staking, and access to Kraken Prime. This approval follows a preliminary authorization granted in May 2026.
Payward states it is targeting a launch in the coming weeks but has not named a specific customer onboarding date. Initial services will include direct support for the UAE dirham, allowing local currency funding and withdrawals without fiat conversion. Institutional clients will be routed to over-the-counter execution and Kraken Prime. Co-CEO Arjun Sethi emphasized that UAE clients will access the same order book available in other markets. Tokenized equities via xStocks are part of the initial offering, though specific asset availability remains undefined.
The rollout connects to broader global expansions, including recent partnerships with Singapore Gulf Bank for USD settlement and a $100 million investment agreement with Nasdaq. Crypto derivatives and additional yield products are planned for later in 2026 and into 2027, subject to further regulatory approvals.
This development marks a significant strategic shift for Kraken, moving from offshore service provision to fully regulated domestic operations within the UAE. By securing Full Market Approval, Payward eliminates the regulatory ambiguity often associated with cross-border crypto exchanges, positioning itself as a compliant infrastructure provider rather than just a trading venue. The integration of dirham-denominated pairs addresses a critical friction point for local users, potentially accelerating adoption by removing foreign exchange barriers and aligning with national monetary sovereignty goals.
From a Market Structure perspective, this license intensifies competition among licensed entities in the region, joining banks like Standard Chartered and brokers like Capital.com under VARA’s framework. However, operational risk remains tied to execution speed; while the regulatory hurdle is cleared, the actual user experience depends on the timely rollout of AED liquidity pools and tokenized equity integrations. The reliance on future approvals for derivatives suggests a phased market entry strategy, prioritizing spot stability before expanding into complex financial instruments.
