Page 49 - CMA Journal (Jan-Feb 2026)

Focus Section

rules for stablecoins, which represent most tokenized support, though participants must stay updated on
assets, potentially simplifying issuance and banking regulatory changes.
interactions. Political shifts, including 2024 presidential
election, may further ease regulations and accelerate 5) UAE: Sandbox Innovation
market development. Institutional players are actively
UAE has positioned itself as a crypto-friendly and
involved, with projects like BlackRock’s BUIDL fund and
regulated hub for digital assets through Virtual Asset
Franklin Templeton’s Benji initiative, particularly focusing
Regulatory Authority (VARA) and initiatives in Dubai
on tokenized treasury bonds and large-scale digital asset
International Financial Centre (DIFC). VARA provides a
adoption.
comprehensive legal framework for digital assets,
2) Switzerland: Legal & Institutional Hub including tokenized securities. Key initiatives include
Dubai Land Department Real Estate Tokenization Pilot
Switzerland’s DLT Act recognizes tokenized securities as (2025), which tokenizes property titles on blockchain,
legally enforceable, with oversight by FINMA, making and Digital Asset Oasis in ADGM and DIFC, supporting
country a leading hub for blockchain-based finance. blockchain firms and new regulatory standards. UAE has
Notable activity includes Societe Generale’s €100 million also seen large-scale market activity, such as a $3 billion
tokenized bond on SDX platform. While regulatory real estate tokenization deal involving MAG, MultiBank,
framework is mature, operational requirements, such as and MAVryk. Country is well-suited for real estate
registration agreements, must be carefully managed. tokenization projects targeting Middle Eastern investors,
Switzerland is ideal for institutional-grade tokenization offering regulatory flexibility and sandbox support,
projects seeking legal certainty and access to European although legal enforceability and cross-border
market under well-established regulatory system. recognition are still evolving.
3) Singapore: Regulatory Pioneer Tokenization in Pakistan: Early

Initiatives
Singapore is considered a pioneer in regulated asset
tokenization. Monetary Authority of Singapore (MAS) Current Status and Future Outlook of
oversees tokenized real-world assets under Securities and
Futures Act, treating them as securities when representing Tokenization on PSX
assets such as equity, debt, or investment funds.
Pakistan is actively building a comprehensive and legally
Tokenization platforms in capital markets must obtain
backed digital asset ecosystem, which forms the
licenses under Capital Markets Services (CMS) and
foundation for future tokenization initiatives that could
Recognized Market Operator (RMO) frameworks. Key
eventually intersect with the Pakistan Stock Exchange
initiatives include Project Guardian, testing tokenized
(PSX). In early 2026, Pakistan’s parliament passed the
bonds and funds, Global Layer 1 (GL1), developing digital
Virtual Assets Act 2026, formally establishing the Pakistan
asset infrastructure standards, and BLOOM, enabling
Virtual Assets Regulatory Authority (PVARA) as a
real-time cross-border settlement of tokenized assets.
permanent regulator empowered to license, supervise,
Institutional adoption is increasing, with UBS and Standard
and enforce compliance for virtual asset service providers
Chartered introducing tokenized investment funds.
(VASPs) such as exchanges, custodians, and token issuers.
Singapore provides clear regulatory framework and strong
This law also imposes penalties for unlicensed crypto
financial infrastructure, making it an attractive hub for
activity and aligns Pakistan’s digital asset regulation with
institutions exploring tokenized capital markets.
global standards.
4) Hong Kong: Tokenized Finance Under this evolving regulatory framework, Pakistan
signed a Memorandum of Understanding (MoU) with
Hong Kong regulates tokenized securities under
Binance to explore blockchain-based tokenization of up
Securities and Futures Ordinance, with Securities and
to USD 2 billion in sovereign and real-world assets,
Futures Commission (SFC) overseeing compliance. City
including government bonds, treasury bills, and
has introduced a tokenized green bond framework and
commodity reserves — with the aim of enhancing
supports security token offerings (STOs) through
liquidity, transparency, and international participation in
sandbox regime. Key initiatives include issuance of Hong
state-backed asset markets.
Kong’s first tokenized green bond in 2023 (around USD
100 million) and second issuance in 2024 worth HK$6 PVARA has also granted No Objection Certificates (NOCs)
billion, as well as approval for tokenized securities by to global exchanges such as Binance and HTX, enabling
Guotai Junan International. Hong Kong is ideal for issuers them to initiate registration and compliance steps under
targeting mainland China and pan-Asian capital, the regulatory regime (though full operational licenses
combining common-law system with strong fintech are still pending).
ICMA’s Chartered Management Accountant, Jan-Feb 2026 47