Page 51 - CMA Journal (Jan-Feb 2026)

Focus Section

Key Benefits for PSX from Tokenization

Impact on PSX

Enhanced Liquidity Faster, continuous trading and fractional ownership open markets to more
participants.

Broader Investor Base Retail and overseas Pakistanis can invest easily in tokenized securities.
Lower Costs & Faster Blockchain reduces intermediaries and settlement times.
Settlement
Global Market Access Tokenized assets can be traded globally, attracting foreign capital.

Transparency & Security Immutable blockchain ledger builds trust and supports regulatory oversight.

Conclusion enabling interoperable settlement systems, offering
fractional token instruments, and aligning PSX strategy
Tokenization is emerging as a powerful tool to modernize with national digital asset projects, Pakistan can
capital markets. It enables fractional ownership, faster strengthen market liquidity, expand participation among
settlement, improved liquidity, and wider access for local and overseas investors, and increase transparency.
investors through blockchain and smart contracts. Global Tokenization is poised to play a central role in
examples show its potential. The UAE has piloted real modernizing the Pakistan Stock Exchange and creating a
world asset tokenization through regulated sandboxes. stronger, digital-ready financial system.
Hong Kong has issued tokenized green bonds and
advanced security token offerings. Singapore provides References
clear licensing rules for institutional tokenized securities.
• https://mettisglobal.news/Pakistan-weighs-2bn-tokenization-
Switzerland ensures strong legal enforceability for digital of-domestic-debt-57860
assets. In the United States, recent regulatory changes
• https://www.precedenceresearch.com/tokenization-market
are encouraging broader institutional adoption and
more efficient market practices. • https://www.dawn.com/news/1961913
In Pakistan, the Virtual Assets Act 2026 and the • https://mettisglobal.news/ECC-approves-Rs800m-grant-for-
establishment of the Pakistan Virtual Assets Regulatory Virtual-Asset-Regulator-PVARA-55474
Authority, PVARA, provide a legal framework for digital • https://www.arabnews.com/node/2626014/amp
assets. The government has signed a Memorandum of
• https://investax.io/blog/leading-jurisdictions-for-tokenized-
Understanding with Binance to explore tokenizing up to real-world-assets
two billion US dollars of sovereign and real-world assets
• https://www.binaryx.com/blog/the-8-best-countries-for-crypto-
including government bonds, treasury bills, and
and-rwa-tokenization-a-2025-guide-for-investors-and-entrepreneurs
commodity reserves. This initiative aims to improve
liquidity, transparency, and attract global investors. (This article is prepared by Dr. Maiyra Ahmed, Assistant Director,
R&P, under the guidance of Shahid Anwar, Senior Director R&P)
By building on these developments and adopting global
best practices such as piloting tokenized securities,

ICMA’s Chartered Management Accountant, Jan-Feb 2026 49