The DFSA is launching the Tokenisation Regulatory Sandbox, a dedicated initiative to support firms exploring tokenised investment products and services within the DIFC. This initiative is part of the DFSA’s commitment to fostering innovation while ensuring regulatory integrity.  

The sandbox consists of two stages:  

1. Expression of Interest on Tokenisation – Firms can signal their interest in developing tokenised products or services within the DIFC.
2. Innovation Testing Licence (ITL) Tokenisation Cohort – Selected firms can test their products and services in a controlled regulatory environment through the DFSA’s ITL programme.  

Who should apply?

The DFSA invites firms engaged in tokenisation-related financial services, including:

• Issuing, trading, holding, or settling tokenised investments such as equities, bonds, sukuk, and collective investment fund units.
• Existing DFSA Authorised Firms looking to expand into tokenisation.
• Firms with a strong understanding of the applicable legal and regulatory requirements.  

Crypto Tokens and Fiat Crypto Tokens are not within scope.

How to apply?

The window of Expression of Interest on Tokenisation is now closed. We will share the next stages of this initiative shortly. 

Eligible firms will be invited to proceed to the second stage: the ITL Tokenisation Cohort, which provides a regulatory sandbox to test tokenisation business models under the DFSA’s supervision.  

Why Join the ITL Tokenisation Cohort?

• Regulatory guidance: Gain clarity on tokenisation rules in the DIFC.
• Controlled testing: Operate in a live market environment with tailored regulatory adjustments.  
• Path to licensing: Successful firms may transition to a full DFSA licence.  

For full details on the Tokenisation Regulatory Sandbox, download the information document.  

For any queries, please contact [email protected].