Page 50 - CMA Journal (Jan-Feb 2026)

Focus Section

Key Dimensions and Outlook

Dimension Current Status Future Outlook & Potential Impact
Regulatory Framework Virtual Assets Act 2026 passed; Provides legal foundation for tokenized asset
PVARA established as statutory markets and compliance mechanisms that could
regulator support integration with PSX
Tokenization Initiatives MoU with Binance to explore Could enable token-based instruments such as
tokenizing USD 2 billion in bonds, T-bills, and commodities to integrate with
sovereign assets regulated markets
Exchange Licensing NOCs issued to Binance & HTX; Licensed digital asset platforms may support
full licenses pending tokenized trading infrastructure under supervision
PSX Integration Status No tokenized securities listed/ Could align with PSX systems once frameworks and
traded on PSX yet custody/settlement interoperability are established
Market Participation Growing interest in blockchain May broaden retail and global investor participation
nationally
Liquidity & Innovation Regulatory setup evolving; Could enable fractional ownership, 24/7 secondary
sandbox testing underway markets, and improved liquidity for previously
illiquid assets

At present, PSX does not directly trade tokenized mainstream capital markets. If tokenization frameworks
securities, but the regulatory progress, sandbox testing and PSX rules align in the future, this may broaden
environment, and strategic engagements with investor access, enhance liquidity for traditionally illiquid
international digital asset firms lay the groundwork for assets, support new product innovation, and attract
potential future integration of tokenized products with global capital.

ICMA Action Plan: Strengthening PSX through Tokenization

Global
Sr. Step ICMA Proposed Actions for PSX
Inspiration
1 24/7 Tokenized U.S. (NYSE/ICE • Develop a tokenized trading layer alongside PSX regular hours for
Trading treasury continuous trading.
bonds) • Support near-instant settlement and secure digital custody for
tokenized PSX instruments to attract local and global investors.
2 Interoperable LSEG, • Create a blockchain-based settlement layer linking tokenized
Settlement & Market Singapore securities with PSX clearing systems (CDC/NCCPL).
Infrastructure (BLOOM) • Ensure compatibility with nation
institutional investors view tokenization as an extension, not
replacement, of existing processes.
3 Fractional Hong Kong, •
Ownership & U.S. bonds, and funds.
Expanded Market • Target overseas Pakistanis and global retail investors by making
Access tokenized fractions easily tradable and accessible internationally.
4 Align with National UAE, • Coordinate PSX strategy with national tokenization pilots under
Tokenization Singapore PVARA regulatory sandbox, starting with sovereign bonds and T-bills.
Initiatives • Use pilot insights to design tokenized investment products for PSX,
including listed securities and new digital instruments.
5 Legal Certainty & Switzerland, •
Regulatory Support Singapore securities under Pakistan law, ensuring enforceable ownership and
custody rights.
• Provide PVARA -approved standards supporting blockchain records
and compliance under SEC and SBP oversight.

48 ICMA’s Chartered Management Accountant, Jan-Feb 2026