Dubai’s Virtual Assets Regulatory Authority (VARA) has granted an In-Principle Approval (IPA) to Atlas AI Labs FZE for the issuance of USAF+, the first asset-backed virtual asset designed to be issued and traded in a fully permissionless environment. The token is a fully collateralized digital representation of the Atlas America Fund (NASDAQ: USAF), a SEC-registered ETF whose assets are custodied by Bank of New York. The net asset value (NAV) of USAF+ is directly linked to the underlying NAV of the USAF ETF. Reserve coverage transparency and reporting follow the same disclosure schedule and format as a traditional ETF, verified by an independent auditor.
What the token is backed by
The USAF+ portfolio includes short-term U.S. Treasury bonds, TIPS, municipal bonds, gold, climate-resilient real estate and REITs, defense and cybersecurity equities, and agricultural and energy commodities. The asset allocation is actively managed using a regime-based approach that adjusts dynamically in real time to changing market conditions, supported by continuous research and execution from Atlas AI Labs and oversight by the Atlas Capital Team Inc. investment committee.
The regulatory framework
VARA’s Asset-Referenced Virtual Assets (ARVA) rulebook is the world’s first regulatory framework that permits the permissionless issuance of asset-referenced virtual assets. The IPA allows Atlas to operate token issuance services under this framework. Reza Bundy, CEO and Chairman of Atlas Capital Team Inc., stated that the architecture exists because Dubai created the regulatory framework for it. A VARA spokesperson said the approval signals the authority’s commitment to enabling a new class of regulated, asset-backed digital financial products.
Key features
- Permissionless access: USAF+ is designed for issuance in a permissionless environment, meaning it can be held, traded, and settled 24/7 without gatekeepers.
- Regulatory oversight: The token is simultaneously backed by a SEC-registered, NASDAQ-listed ETF and approved by VARA for permissionless issuance.
- Institutional-grade custody: The underlying ETF assets are custodied by Bank of New York.
- Independent auditing: Reserve coverage is verified by an independent auditor.
- Macroeconomic credibility: The Atlas America Fund’s investment committee is chaired by Dr. Nouriel Roubini, former Senior Advisor to the U.S. Treasury and Senior Economist at the White House. This marks Roubini’s first foray into digital assets.
Tradeoffs
While the permissionless architecture democratizes access to tokenized real-world assets for a global audience, it also introduces risks typical of decentralized environments, including potential for illicit use and lack of recourse for token holders. The regulatory oversight from VARA and SEC registration of the underlying ETF mitigate some of these risks, but the token’s permissionless nature means it operates outside traditional gatekeeping mechanisms.
When to use it
USAF+ is designed for investors seeking exposure to a diversified, actively managed portfolio of real-world assets in a tokenized form that can be traded 24/7 without intermediaries. It may appeal to institutional and retail investors looking for a regulated on-ramp to tokenized assets, particularly those interested in a macro-hedged strategy.
Bottom line
Atlas AI Labs’ USAF+ represents a structural breakthrough: a regulated, asset-backed token that can be issued and traded permissionlessly. The combination of SEC-registered ETF backing, VARA approval, and independent auditing creates a template for how jurisdictions might reconcile DeFi liquidity with real-world asset tokenization. Whether this model gains traction depends on market adoption and the ability of the regulatory framework to scale.