13-05-2025
Dubai's DFSA tokenisation sandbox receives 96 applications from financial firms
The Dubai Financial Services Authority (DFSA) has reported that 96 firms have expressed interest in its Tokenisation Regulatory Sandbox, marking a step forward in the regulator's strategy to support financial innovation within the Dubai International Financial Centre (DIFC).
The sandbox, part of the DFSA's Innovation Testing Licence programme, aims to enhance innovation while maintaining market integrity and protecting investors.
Interest came from various sectors exploring tokenisation of financial assets, including shares, bonds, Islamic bonds (sukuk), fund units, and related trading and custody services.
DFSA sandbox attracts strong interest
Both established financial institutions and startups seeking to develop digital asset solutions in a regulated environment showed interest in the initiative, highlighting DIFC's position as a destination for digital finance and innovation.
Justin Baldacchino, Managing Director, Supervision, DFSA, said: 'We are excited to see such strong interest in the DFSA's Tokenisation Regulatory Sandbox and to talk about it at the Dubai FinTech Summit. This momentum supports the DFSA's strategic commitment – and aligns with the Dubai Economic Agenda D33 goal – to position Dubai among the world's top four global financial hubs by 2033.
'The sandbox marks a new chapter in our engagement with innovative financial technologies, enabling firms to safely test tokenised solutions in a transparent, measured, and responsible manner, within a well-regulated environment, without being subject to the full suite of regulatory requirements that would otherwise apply.'
The sandbox allows for targeted supervision, regulatory dialogue, and development of policy responses to emerging financial technologies.
It supports ambitions across DIFC, Dubai, and the United Arab Emirates to become a hub for digital assets, fintech, and next-generation financial services.
Following the expressions of interest stage, selected firms will be invited to apply for an Innovation Testing Licence for live testing under DFSA oversight.
During this phase, they can refine their offerings while addressing investor protection, transparency, and financial stability concerns.
Upon completion, firms may apply for a full licence or withdraw from the programme.
