Dubai’s DFSA Sandbox draws 96 Tokenisation Firm Applications
The Dubai Financial Services Authority (DFSA) has reported a strong response to its Tokenisation Regulatory Sandbox, with 96 firms expressing interest. This marks a significant step in the DFSA’s efforts to foster financial innovation within the Dubai International Financial Centre (DIFC). The sandbox is part of the DFSA’s Innovation Testing Licence programme, designed to support the development of new financial technologies while ensuring market integrity and investor protection.
Fostering Innovation in a Regulated Environment
The sandbox aims to facilitate the growth of tokenisation in financial assets such as shares, bonds, sukuk (Islamic bonds), and fund units. It provides a platform for both established financial institutions and startups to test digital asset solutions under the oversight of the DFSA. The initiative also fosters regulatory dialogue, allowing the DFSA to respond to emerging financial technologies in a proactive and measured way. By offering a controlled environment, the sandbox allows firms to experiment with tokenised solutions without being subject to the full regulatory requirements that would normally apply.
A Strategic Step Towards Becoming a Global Financial Hub
The DFSA’s Tokenisation Regulatory Sandbox supports Dubai’s broader ambition to become one of the world’s top financial hubs by 2033, in line with the Dubai Economic Agenda D33. According to Justin Baldacchino, Managing Director of Supervision at DFSA, the strong interest from financial firms shows the increasing importance of the DIFC as a destination for digital finance. As the sandbox moves into its live testing phase, selected firms will be able to refine their solutions while addressing critical issues such as transparency, financial stability, and investor protection. Upon completing the testing, firms can either apply for a full licence or withdraw from the programme.
This initiative highlights the DFSA’s commitment to balancing innovation with responsibility, ensuring that Dubai remains at the forefront of digital assets and fintech while maintaining strong regulatory standards.
