Dubai, United Arab Emirates — Dubai's Virtual Assets Regulatory Authority (VARA) has signed a memorandum of understanding with Mastercard to work together on the development of the emirate's virtual assets market.
The agreement combines the regulator's supervisory know-how with the payments company's track record in payments technology and digital innovation. Both sides want the sector to be trusted, innovative and sustainable.
Under the MoU, VARA and Mastercard intend to deepen their engagement with the industry and share knowledge. They will also look for ways to support new technologies and the companies active in the market.
A second strand covers younger firms. The two organizations will consider initiatives aimed at founders and early-stage businesses working with virtual assets, among them the chance to test products and services in regulatory sandboxes.
Mastercard's role draws on its work building the infrastructure that lets stablecoins and other digital forms of value be used in everyday payments. It pointed to the company's recent purchase of BVNK, which it described as a leader in stablecoin infrastructure.
The signing took place at the Dubai FinTech Summit, and VARA's release said the deal was struck to mark Dubai Future Finance Week. The week, organized by the Dubai International Financial Centre, ran from November 2 to 6, 2026, and brought together financial leaders, innovators, regulators and investors around the summit.
Matthew White, Chief Executive Officer of VARA, said: “Dubai's ambition is not simply to participate in the future of finance, but to help shape it. Collaboration between regulators and global industry leaders is essential to building an ecosystem where innovation can flourish alongside strong regulatory standards. Our engagement with Mastercard reflects our commitment to fostering responsible innovation, strengthening market confidence and ensuring Dubai remains at the forefront of the evolving digital economy.”
Gina Petersen-Skyrme, Senior Vice President and Country Manager, UAE and Oman, at Mastercard, added: “The potential of digital assets lies in their ability to create new ways for people and businesses to exchange value. Realizing that potential requires clear regulatory frameworks, trusted infrastructure and close collaboration across the ecosystem. At Mastercard, we are bringing our global expertise in payments, security and digital assets to our work with VARA, exploring how emerging technologies can be applied responsibly and contribute to Dubai's ambition to shape the future of finance.”
The parties presented the MoU as an example of Dubai's commitment to constructive work between regulators and private companies. They linked it to the emirate's broader goal of becoming a leading global destination for responsible innovation in virtual assets.
VARA's release also tied the deal to the Dubai Economic Agenda, known as D33. That plan puts innovation and digital transformation at the center of Dubai's long-term economic development.
The BVNK deal gives that payments angle some weight. Mastercard agreed in March to buy BVNK for up to $1.8 billion, including $300 million in contingent payments. Founded in 2021, BVNK builds infrastructure linking fiat currencies and stablecoins, and its platform lets businesses send and receive payments on every major blockchain network in more than 130 countries.
Mastercard closed the acquisition on August 3, 2026. It said at the time that BVNK's technology would help financial institutions, fintechs and enterprises scale stablecoin and tokenized asset uses such as cross-border business payments, payouts, settlement and treasury flows.
VARA was set up in March 2022 under Law No. 4 of 2022. It regulates, supervises and oversees virtual assets and related activities across all of Dubai's commercial zones, free zones and special development zones among them, with the DIFC the one exception.
The regulator has drawn several international crypto firms. In May, Kraken's parent company Payward received preliminary approval from VARA for broker-dealer, investment and management licenses, with further approvals still needed before a full launch.
