Latest news with #sandbox
Arabian Business
13-05-2025
- Business
- Arabian Business
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.
Zawya
12-05-2025
- Business
- Zawya
DFSA's inaugural tokenisation regulatory sandbox attracts expression of interest from close to 100 firms
Dubai, United Arab Emirates: The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has announced that 96 innovative firms have expressed interest in the DFSA's inaugural Tokenisation Regulatory Sandbox. The launch of the sandbox marks a major step forward in the DFSA's strategy to support responsible financial innovation within the DIFC and reflects its growing focus on tokenisation as a transformative force in financial services. The Tokenisation Regulatory Sandbox forms part of the DFSA's Innovation Testing Licence programme and supports the regulator's broader commitment to fostering innovation while maintaining market integrity and protecting investors. Expressions of interest came from a diverse range of sectors that are exploring the tokenisation of financial assets and instruments, including those associated with the tokenisation of shares, bonds (including Islamic bonds (sukuk)), units in a fund, and the trading and safe custody of those assets – reflecting the broad potential of tokenisation across the financial ecosystem. The initiative attracted strong interest from both established financial institutions wishing to explore tokenisation use cases and innovative start-ups looking to scale breakthrough digital asset solutions in a regulated environment. This strong engagement underscores DIFC's growing appeal as a global hub 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 DFSA's themed sandbox approach enables targeted supervision, constructive regulatory dialogue, and the development of tailored policy responses to emerging financial technologies while fostering responsible innovation in the market. It also supports DIFC, Dubai, and the United Arab Emirates' broader ambition to become a global hub for digital assets, fintech, and next-generation financial services and market infrastructure. Following the Expressions of Interest stage, selected firms will be invited to apply for an Innovation Testing Licence and enter a live testing phase under DFSA oversight, where they can refine their offerings while addressing critical areas such as investor protection, transparency, and financial stability. Upon successful completion of the programme, firms may apply to transition to a full, unrestricted licence, or withdraw their Innovation Testing Licence. For more information on the Innovation Testing Licence, access the explainer guide here. The DFSA's Tokenisation Regulatory Sandbox underscores the DFSA's commitment to enable innovation in a way that is responsible, informed, and aligned with global regulatory best practice. For further information, please contact: Corporate Communications Dubai Financial Services Authority (DFSA) Level 13, The Gate, West Wing Dubai, UAE Tel: +971 (0)4 362 1500 Email: DFSAcorpcomms@
