Dubai Financial Authority Opens Applications for Tokenization Sandbox

According to PANews, the Dubai Financial Services Authority (DFSA) has announced an invitation for companies to apply for its tokenization regulatory sandbox, with the application deadline set for April 24, 2025. The DFSA, an independent body responsible for overseeing the Dubai International Financial Centre (DIFC), revealed in a March 17 announcement that the sandbox initiative aims to attract firms interested in offering tokenized investment products and services. This sandbox provides a controlled environment for businesses to test tokenized financial solutions under regulatory supervision. The DFSA specified that eligible services include tokenized stocks, bonds, Islamic bonds, and units of collective investment funds. Both existing DFSA-authorized firms looking to expand into tokenization and new eligible applicants are encouraged to apply. Once applications are submitted, companies will undergo an evaluation process. Successful candidates will gain structured testing opportunities within the sandbox and receive tailored regulatory guidance. The DFSA emphasized that only companies with robust business models and strong compliance capabilities will be selected. This sandbox initiative is part of the DFSA's broader innovation testing license program, designed to help companies refine financial products and prepare for full authorization.