The Dubai Financial Services Authority has moved its Tokenisation Regulatory Sandbox into the next phase by starting engagement with firms selected to enter its Innovation Testing Licence programme, enabling tokenisation-related financial products and services to be tested in the Dubai International Financial Centre under a controlled environment. The sandbox, launched in March 2025, drew 96 expressions of interest from the United Arab Emirates, United Kingdom, European Union, Canada, Singapore, and Hong Kong. Proposals covered tokenisation of financial assets and instruments such as bonds including sukuk and fund units including money market and property funds, as well as trading and safe custody services. Following a review of business model, clarity of use case, and readiness to test, some applicants were invited to live testing under the Innovation Testing Licence, while others were considered suitable for full authorisation under existing rules based on operational maturity and experience in other regulated jurisdictions. Next, the DFSA will co-develop bespoke testing plans with selected firms, with trials expected to begin in the coming weeks. Results from this cohort are intended to inform future regulatory policy and potential refinements to the DFSA’s digital assets and wider innovation frameworks.

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