The Dubai Financial Services Authority (DFSA) is calling on businesses to show their interest in participating in its Tokenization Regulatory Sandbox, with a deadline set for April 24, 2025.
In an announcement made on March 17, the DFSA—an independent entity supervising the Dubai International Financial Centre (DIFC)—indicated that this initiative is aimed at companies looking to deliver tokenized investment products and services.
The sandbox creates a regulated environment where tokenized financial solutions can be tested under supervision.
This initiative emerges as the trend of tokenization continues to gain momentum globally. According to Rwa.xyz, the market for real-world asset (RWA) tokenization is currently valued at around $18.86 billion, with user growth exceeding 5% in just the past month.
Who Can Join?
The DFSA has specified that qualifying services encompass tokenized equities, bonds, sukuk, and collective investment fund units.
Both firms already authorized by the DFSA that wish to venture into tokenization, as well as new applicants meeting the established criteria, are welcome to apply.
Applications will be accepted from March 17 through April. After submission, firms will go through an evaluation process. Those who succeed will benefit from structured testing opportunities and customized regulatory support within the sandbox.
The DFSA noted that only those firms with robust business models and a strong understanding of regulatory compliance will be chosen.
This initiative is part of the regulator’s broader Innovation Testing License program, aimed at assisting companies in refining financial products before full approval.
Support for Cryptocurrency in the UAE
The tokenization sandbox is in line with the UAE’s wider objective to enhance its status as a global leader in digital finance.
This month, authorities granted a cross-border payment license to Ripple, a cryptocurrency payment provider, making it the first blockchain payment company to obtain regulatory approval within Dubai’s financial landscape.
Beyond Dubai, Abu Dhabi is also taking strides to incorporate stablecoins into its financial framework, utilizing Tether’s USDT for expanded institutional use.
Additionally, Coinbase and Chainlink have initiated a collaborative effort to boost institutional cryptocurrency adoption in the region.
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