Dubai Grants First Crypto Derivatives License to Nomura’s Laser Digital

The license permits Laser Digital to execute vanilla options on major cryptocurrencies with settlement governed by ISDA-standard agreements, a format familiar to traditional institutional investors. These contracts will initially focus on medium-term maturities and are targeted at institutions looking for structured hedging or exposure strategies in the digital asset class.

Laser Digital is expected to introduce its crypto derivatives offering with a focus on simplicity and regulatory alignment, aiming to attract institutional participants through well-understood financial instruments. Rather than launching with complex products, the firm appears to be prioritizing a stable foundation that aligns with traditional risk management frameworks. Over time, it may broaden its scope to include complementary services such as structured yield products, crypto financing solutions, and integration with existing trading infrastructure to support a more comprehensive investment ecosystem.

This development follows Laser Digital’s receipt of its VARA operating license on August 1, 2023. The license authorizes it to offer virtual asset broker-dealer and management/investment services in Dubai. CEO Jez Mohideen lauded VARA’s “thorough and consultative” process, highlighting its appeal to institutional investors under a strong regulatory framework. The Dubai license further bolsters Laser Digital’s international presence, which also includes operations in Switzerland and London.

VARA’s greenlight for OTC options falls under its experimental pilot framework, designed to regulate sophisticated financial instruments involving digital assets while minimizing systemic risks. VARA was established in March 2022 as the world’s first independent regulator solely dedicated to virtual assets, and its tiered licensing system has become a template for digital asset policy in the Middle East. The authority has also granted licenses to other notable firms, including Binance and Hex Trust, but Laser Digital’s new approval marks the first client-facing crypto derivatives license issued by the regulator.

Laser Digital’s positioning in Dubai is part of a broader strategy by Nomura to expand into regulated digital asset markets. Since its launch in 2022, Laser Digital has focused on bridging institutional capital and digital asset infrastructure, offering tokenized asset strategies, market access, and investment products that align with traditional finance standards. According to company disclosures, its operations emphasize full compliance, counterparty risk controls, and alignment with international legal frameworks such as ISDA.

The choice to base its crypto derivatives operations in Dubai reflects a growing trend among global financial institutions seeking out jurisdictions with clear and progressive crypto policies. The UAE, particularly through VARA in Dubai and the Abu Dhabi Global Market (ADGM), has become a focal point for digital asset activity in the region. In an August 2024 report by Barron’s, Dubai was cited as one of the few global jurisdictions with a purpose-built digital asset regulator and comprehensive licensing regime for derivatives, staking, custody, and token issuance.

The market for regulated crypto derivatives remains small but is expanding rapidly. While U.S. exchanges like CME offer listed futures on Bitcoin and Ethereum, OTC derivatives with crypto underlyings are still relatively rare, particularly in jurisdictions with transparent rules. Dubai’s approach aims to address that gap by offering institutional players a sandbox for compliant derivatives trading with full legal enforceability. Laser Digital’s OTC options product, executed under ISDA contracts, mirrors traditional derivatives infrastructure, making it more accessible to hedge funds, asset managers, and proprietary trading firms familiar with legacy finance standards.

The introduction of regulated OTC options could unlock new demand among institutions that have so far remained cautious due to legal uncertainties in other markets. Laser Digital’s contracts are expected to help institutions hedge crypto exposure, implement volatility strategies, or gain directional exposure in a legally sound manner.

The move could trigger broader interest in Dubai’s crypto framework. As Hong Kong, Singapore, and the European Union advance their own digital asset regulations, Dubai’s emphasis on licensing sophisticated trading products positions it as a competitive destination for institutions across both Eastern and Western markets. The Middle East is also increasingly recognized not only as a source of capital but as a jurisdiction that offers pragmatic and innovation-friendly financial policies.

Laser Digital has not named the specific tokens it will offer via its OTC options, though it has indicated "major crypto tokens" will be included. The company may expand beyond basic derivatives into more complex structures and integrate these offerings with its broader trading and investment capabilities.

Regulated instruments such as OTC options represent a new frontier in merging traditional finance standards with the flexibility of crypto markets. With Dubai acting as a launchpad, Nomura’s Laser Digital is positioning itself at the center of this convergence, offering institutions a regulated gateway into crypto risk management and structured exposure.