Payward FZCO received its virtual asset service provider license under reference VL/26/10/002 from Dubai’s Virtual Assets Regulatory Authority, according to the regulator’s public register. The full market approval, granted on October 6, completes the process that began with preliminary authorization in May 2026 for broker-dealer and investment management activities. VARA data lists the entity at Unit UT-12-CO-74 in the DMCC Business Centre with an associated UAE Capital Markets Authority registration of CMA-VASP-0101000-0067. The approval enables Payward to operate as a regulated provider serving clients across investor categories in the emirate.
At launch, clients will access spot and margin trading in UAE dirham-denominated pairs with direct AED funding and withdrawals, Payward said in an announcement. The offering extends to on-chain staking, tokenized U.S. equities via xStocks and crypto transfers through the Krak application for retail and professional users. Institutional clients will receive over-the-counter spot trading together with Kraken Prime prime brokerage services. All transactions will connect to the exchange’s existing global order books spanning multiple regions.
Payward expects to roll out crypto derivatives and expanded yield products later in 2026 and into 2027 once it obtains additional regulatory clearances. The company also plans to provide embedded trading infrastructure to local partners in the region. In remarks connected to the earlier approval stage, Arjun Sethi, co-CEO of Payward and Kraken, said, “Clients in the UAE get the same order book, the same balance sheet, and the same multi-asset coverage we run in every other market. The difference is the rulebook is written down and the supervisor is local. That is what a license should mean.”
The license issuance raises the number of active providers on VARA’s register to 58, up from 49 at the time of Payward’s preliminary approval in May, according to the authority’s published figures. Dubai has developed a structured framework for virtual asset activities since VARA began operations, attracting international platforms through defined licensing pathways. Payward’s entry forms part of broader industry movement into the UAE’s digital asset sector under local supervision.
Kraken’s regulated presence builds on the exchange’s existing global operations while aligning with UAE requirements for client asset protection and compliance. The development follows Payward’s completion of preparations that the preliminary approval permitted, including setup of the local entity. VARA separates regulated activities into distinct categories, with Payward authorized specifically for management, investment and broker-dealer services at this stage.
Separate discussions between Payward and Wells Fargo on potential digital asset liquidity arrangements remain ongoing without a finalized agreement, company-related reports indicated. The UAE’s crypto market has drawn increased participation from both established exchanges and financial institutions in recent years. Payward’s full approval positions Kraken to serve the local market directly from a Dubai base while maintaining connections to its international liquidity pools.
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