Payward, the parent company of crypto exchange Kraken, has received full market approval from Dubai's Virtual Asset Regulatory Authority (VARA). The license lets Kraken operate as a regulated virtual asset service provider for retail, professional, and institutional investors in the UAE.
The approval follows preliminary authorization from VARA in May, which allowed Payward to finish operational setup before onboarding clients. That work is now done.
What UAE clients can actually do
From launch, Kraken clients in the UAE can trade spot and margin using dirham-denominated pairs. They can also fund and withdraw directly in dirhams — a notable detail in a region where many exchanges still route fiat through intermediaries.
The product lineup doesn't stop there. UAE clients get on-chain staking, xStocks tokenized equities, and Krak for crypto transfers. Institutional clients pick up OTC spot trading and Kraken Prime.
Derivatives, yield products wait on regulators
Crypto derivatives and new yield products are expected later in 2026 and into 2027 — subject to further regulatory approval. That's a standard sequencing move for exchanges entering a new jurisdiction: get the spot and custody business live first, then layer on more complex instruments once the regulator is comfortable.
The Nasdaq and SoFi connections
Kraken's UAE entry lands as its parent builds out a much wider financial footprint. In September, Bloomberg reported that Nasdaq Inc. was investing $100 million in Payward, in a deal valuing the company at $21 billion. As part of that, Kraken will distribute Nasdaq's tokenized stocks on its own platform.
Earlier, Payward and SoFi Technologies announced a deal to route SoFi customers' crypto orders through Kraken Prime — the prime brokerage arm launched in 2025 — and to list SoFi's stablecoin on the exchange.
Payward now holds more than 100 licenses and registrations worldwide, spanning Europe, the Americas, Asia-Pacific and the Middle East. The UAE approval adds a key piece of the Middle East map.
Not just a crypto exchange anymore
Kraken has been pushing into traditional finance, letting users trade stocks, bonds and other assets. The company has marketed its app as a 'primary account for everything.' This UAE license fits that strategy: a regulated venue where clients can hold crypto, tokenized equities and traditional assets side by side.
The next concrete step is the launch itself — Kraken hasn't said exactly when UAE onboarding opens, but the operational groundwork from May is complete. After that, watch for derivatives and yield products to clear VARA sometime in 2027.
