Dubai's Virtual Assets Regulatory Authority (VARA) has granted In-Principle Approval (IPA) to Atlas AI Labs FZE to issue and trade the world's first asset-backed token in a fully permissionless environment. The token, named USAF+, is a fully collateralized digital representation of the Atlas America Fund (NASDAQ: USAF), a SEC-registered ETF custodied by the Bank of New York.
What USAF+ is
USAF+ is a token whose net asset value (NAV) directly references the underlying NAV of the USAF ETF. The reserve backing follows the same disclosure schedule and format as the traditional ETF and is certified by a third-party auditor. The underlying portfolio includes short-term U.S. Treasuries, TIPS, municipal bonds, gold, climate-resilient real estate and REITs, defense and cybersecurity equities, and agricultural and energy products. Asset allocation is actively managed under a regime-aware framework that adjusts dynamically to changing market environments, supported by continuous research from Atlas AI Labs and oversight by the Atlas Capital Team Inc. Investment Committee, chaired by Dr. Nouriel Roubini.
Permissionless architecture
What distinguishes USAF+ from existing tokenized assets is its open architecture. The token is designed to be issued and traded in a permissionless environment — meaning no gatekeepers control access, transfer, or trading. It will be available 24/7 globally. This is the first time a VARA-approved asset-referenced virtual asset (ARVA) has been authorized for permissionless issuance. The ARVA rulebook, created by VARA, specifically allows for this category of virtual assets to operate without permissioned restrictions.
Regulatory context
VARA's IPA covers token issuance services under its Asset-Referenced Virtual Asset (ARVA) Rulebook. The approval simultaneously ties the token to a SEC-registered, Nasdaq-listed ETF and to VARA's regulatory framework. Reza Bundy, CEO and chairman of Atlas Capital Team Inc., stated that the architecture exists because Dubai built the regulatory framework for it. A VARA spokesperson noted that the approval enables a new class of regulated, asset-backed digital finance and reinforces the UAE's position as a hub for regulated digital asset innovation.
Key figures
Dr. Nouriel Roubini, former senior advisor to the U.S. Treasury and senior White House economist, chairs the investment committee of the Atlas America Fund. This marks his first entry into digital assets. Roubini described the intersection of macroeconomic precision and digital innovation as the foundation for next-generation financial infrastructure.
Tradeoffs
While USAF+ offers permissionless access, it remains backed by a regulated ETF subject to SEC disclosure requirements. The token's NAV is directly linked to the ETF's NAV, meaning holders are exposed to the same portfolio risks and management decisions. The permissionless environment also introduces considerations around custody, smart contract risk, and secondary market liquidity that are not present in traditional ETF trading.
Bottom line
USAF+ represents a structural experiment: combining a regulated, institutionally managed ETF with a permissionless token architecture. Whether this hybrid model gains traction depends on how well it balances regulatory oversight with open access, and whether the underlying portfolio's regime-aware strategy delivers the stability it promises.