Abu Dhabi and Dubai-based entities are joining forces on a new initiative aimed at bringing traditional Islamic finance instruments onto blockchain infrastructure under regulated frameworks. The ADI Foundation and Tokinvest have signed a memorandum of understanding to explore real-world asset tokenization, digital asset issuance, and blockchain-based settlement.
The primary focus of the collaboration is a $100 million tokenized Sukuk. The parties plan to tokenize existing Sukuk issued by UAE entities and distribute the resulting digital investment products through regulated channels. This step sits within a wider effort to identify, develop, and evaluate tokenized opportunities across multiple asset classes.
Asset Pipeline Meets Regulated Market Access
ADI Foundation operates ADI Chain, described as institutional blockchain infrastructure designed to support the issuance, operation, and settlement of digital assets, including tokenized real-world assets. The foundation contributes its real-world asset tokenization pipeline and the underlying blockchain layer.
Tokinvest is a Dubai-based digital investment platform regulated by the Virtual Assets Regulatory Authority (VARA). It specializes in structuring, issuance, investor onboarding, and distribution of tokenized products. The platform has previously brought to market Franklin Templeton’s tokenized money market fund, a Luxembourg-issued private-credit digital bond, and tokenized UK residential real estate.
Under the MoU, the two sides will combine these capabilities. ADI’s asset origination and blockchain infrastructure will pair with Tokinvest’s regulated market access and distribution expertise. The arrangement also contemplates bringing Tokinvest’s existing product suite onto ADI Chain through appropriate regulated structures.
Focus on Existing UAE Sukuk and Expanded Asset Classes
The initial target remains the $100 million tokenized Sukuk drawn from existing instruments of UAE issuers. Distribution is expected to occur via regulated partnerships rather than unregulated channels. This approach seeks to keep the products within established oversight frameworks while introducing blockchain-based settlement and potential fractional access.
Beyond Sukuk, the partners intend to examine private credit, funds, and other yield-generating assets. The goal is to develop regulated digital investment products that could broaden investor access and create additional capital channels. Evaluation of commercial and regulatory viability will precede any move to full development.
Ramana Kumar, ADI Foundation’s President of Stablecoin Ecosystem, stated, “Bringing real-world assets on-chain requires the right combination of asset origination, regulated issuance and investor access. Tokinvest brings strong capabilities across structuring and distribution, while ADI provides the asset pipeline and blockchain infrastructure to support tokenised markets at scale. Together, we aim to create practical pathways for real-world assets to enter regulated digital investment markets.”
Scott Thiel, CEO of Tokinvest, added, “Our collaboration with ADI Foundation brings together two highly complementary capabilities: regulated digital investment infrastructure and institutional blockchain technology. By combining Tokinvest’s issuance, onboarding and distribution capabilities with ADI’s RWA pipeline and blockchain ecosystem, we aim to identify new opportunities for real-world assets to access digital investment markets.”
Context Within UAE Digital Asset Development
The agreement aligns with ADI Foundation’s stated strategy of building infrastructure and institutional relationships that connect regulated digital assets with real-world economic activity. ADI Chain has been positioned as a Layer-2 network oriented toward institutional and government use cases, including stablecoin settlement and tokenized assets.
Tokinvest’s VARA licensing places it among platforms authorized for multi-asset issuance and broker-dealer activities in Dubai. Its prior product launches illustrate a pattern of packaging established financial instruments into tokenized formats under regulatory supervision.
ADI Foundation operates from Abu Dhabi Global Market, a jurisdiction that has developed a dedicated framework for digital assets and distributed ledger technology entities. This setting has supported the foundation’s focus on institutional-grade infrastructure designed for compliance-sensitive applications.
The collaboration sits within a wider UAE environment where both Abu Dhabi and Dubai have advanced separate but complementary approaches to digital asset regulation, allowing platforms and blockchain networks to operate under clear licensing regimes when structuring and distributing tokenized products.
