DFSA Publishes Scaling Tokenisation: The Road Ahead as Tokenised Markets Reach an Inflection Point
Asset tokenization is moving into live financial markets, representing assets or associated rights as digital tokens on a ledger. However, There are a few complications in this particular case because, clearly, being able to issue a token seems to be just one part of the maze. What matters the most is who holds the asset eventually. Payment settlement confusions as well as final responsibilities in case something breaks are also a little bit unclear.
Those questions sit behind the DFSA’s 10 November 2026 update on Scaling Tokenisation: The Road Ahead. For UAE firms considering real world asset tokenization, the practical implication is clear: ownership, settlement and risk controls need attention before launch. For finance teams, these decisions shape the product’s viability, investor protections and financial reporting.
DFSA Launches Its Tokenisation White Paper at the Future Tokenisation Forum
The DFSA picked a loud stage for a careful document.
Released During the Inaugural Dubai Future Finance Week
Mark Steward, the DFSA’s Chief Executive, launched the paper at the Future Tokenisation Forum. The forum sat inside the inaugural Dubai Future Finance Week, which closed on 6 November with 1,000 speakers across 85 side events.
Practitioner Insights From BlackRock, Ripple, Robinhood, Soter Insure and Standard Chartered
The paper draws on all five views. It prescribes no single technology or business model. It asks what conditions let tokenisation grow responsibly.
Five Themes Set to Shape the Next Phase of Tokenisation
Five themes run through the paper. Together they describe a market with the assets but not yet the plumbing. Abu Dhabi sees the same gap. The Coinbase tokenisation hub in ADGM, permitted by the FSRA in August, proves the race is real, and issuers weighing tokenized bonds Abu Dhabi against the DIFC will compare both.
Network Effects and Ecosystem-Wide Connectivity
A token with no buyers, no cash and no venue is just a demo. Value grows as issuers, investors and intermediaries connect. That holds for real world asset tokenization of every kind, from fractional real estate tokenization to RWA tokenization Dubai projects.
Cross-Border Coordination and Common Standards
Capital ignores borders. Tokens should too. When jurisdictions treat the same token differently, liquidity stalls, so the paper pushes for common standards.
Regulated Custody to Address Safety and Security Concerns
Who holds the asset? Investors ask that first. Regulated digital custody answers it, and weak cross-chain bridges remain a risk investors price in.
Digital Cash On-Chain: Regulated Stablecoins, Tokenised Deposits and Wholesale Central Bank Money
Tokenized assets need cash to settle against. Regulated stablecoins, tokenized deposits and wholesale central bank money all compete for that role. The arithmetic is blunt: at 10% of global securities, the cash needed runs into trillions, so no single form carries it.
Interoperability to Avoid Digital Islands That Fragment Liquidity
Private chains, public chains and traditional market infrastructure must connect. Stay isolated, and liquidity splits into puddles.
Financial Stability Risk Remains Limited at Current Scale
Should regulators lose sleep? Not yet. At today’s size, tokenisation does not threaten financial stability. But size is the keyword, and it keeps changing.
Risks Could Grow as Tokenised Markets Connect With Traditional Finance
Every new link to banks, funds and payment systems lets shocks travel both ways. Growth and risk rise together, which is why custody, settlement and supervision keep surfacing in the paper.
DFSA’s Tokenisation Framework Already Operating in the DIFC
The paper does not start from zero. Two DFSA tools are already live, and a second regulator shapes the stablecoin UAE picture.
Tokenisation Regulatory Sandbox Under the Innovation Testing Licence
Launched in March 2025, the Tokenisation Regulatory Sandbox runs through the Innovation Testing Licence. Firms filed an expression of interest first, and selected ones moved into a live cohort. Tokenised equities, bonds, sukuk and fund units are in scope. Crypto tokens are not. 96 firms from six jurisdictions showed interest. Wondering how approval works? See our step-by-step DFSA approval guide.
Crypto Token Regime Changes From 12 January 2026 and DFSA-Recognised Fiat Crypto Tokens
Since 12 January 2026, firms judge non-fiat crypto token suitability themselves, because the DFSA dropped its Recognised Crypto Token list. Fiat crypto tokens stay with the DFSA, which currently recognises USDC, EURC and RLUSD. Dirham tokens sit elsewhere, under the Central Bank of the UAE’s Payment Token Services Regulation. Two perimeters. Pick the right one first.
ADEPTS View: Tokenisation Readiness for DIFC Firms and Issuers
A white paper is not a licence condition. It does show what supervisors will care about, so we read it as a checklist.
Custody, Settlement and Valuation Controls Before Going Live
Test three things first. Who holds the asset, and can you prove it? How does settlement finish, and in which cash? How is each token valued at every reporting date? These are control questions before technology questions. Our ICOFR advisory turns them into documented controls auditors can test.
Tax and Accounting Treatment of Tokenised Assets in the UAE
VAT follows what the token represents, not the chain it runs on. Cabinet Decision No. 100 of 2024 exempts transfers and conversions of virtual assets, but its definition excludes financial securities, so tokenised securities need separate analysis. FTA Public Clarification VATP040 covers the detail, and our guide on tokenised assets Abu Dhabi and DIFC firms goes further.
For corporate tax, test Qualifying Free Zone Person status. The 0% rate covers qualifying income only, and 9% hits the rest. On the books, IFRS 9 usually fits digital securities, while IAS 38 covers own crypto holdings. CARF is next: the UAE ratified it through Federal Decree No. 60 of 2026, with first exchanges due in 2028. Our corporate tax, VAT and CARF guide covers it.
ADEPTS Supports DIFC Firms Exploring Tokenised Products
Planning a launch? Our risk advisory team and DIFC-approved auditor practice help with:
- Readiness reviews of custody, settlement and valuation controls
- VAT, corporate tax and CARF classification of your tokens
- Sandbox and DFSA approval preparation
With ADEPTS, you issue a token audit-ready. This means no hassle, no confusion, and no delays.
Conclusion
The DFSA’s message is plain. Tokenisation has the assets. It still needs the connections. For tokenization in UAE markets, DIFC and ADGM are racing to supply them, and the DIFC keeps growing. Get ready before the market does! Talk to ADEPTS today.
References
- Abu Dhabi Global Market. “Coinbase Establishes Its Tokenization Hub in Abu Dhabi, with Financial Services Permission from the Financial Services Regulatory Authority (FSRA).” Media announcement, August 13, 2026. https://www.adgm.com/media/announcements/coinbase-establishes-its-tokenization-hub-in-abu-dhabi-with-financial-services-permission-from-the-financial-services-regulatory-authority.
- Central Bank of the UAE. Payment Token Services Regulation (Circular No. 2/2024). CBUAE Rulebook.
https://rulebook.centralbank.ae/en/rulebook/introduction-84. - Dubai Financial Services Authority. “Tokenisation at an Inflection Point: DFSA White Paper Explores the Conditions for Scaling Tokenised Markets.” DFSA News. https://www.dfsa.ae/news/tokenisation-inflection-point-dfsa-white-paper-explores-conditions-scaling-tokenised-markets.
- Dubai Financial Services Authority. “Tokenisation Regulatory Sandbox.” DFSA Innovation.
https://dfsa.ae/innovation/tokenisation-regulatory-sandbox. - Dubai Media Office. “Dubai Future Finance Week Concludes, Shaping the Future of Finance.” November 9, 2026. https://mediaoffice.ae/en/news/2026/novemebr/09-11/dubai-future-finance-week-concludes-shaping-the-future-of-finance.
- Dubai Media Office. “The DFSA Implements Major Updates to Crypto Token Regulatory Framework.” January 12, 2026. https://mediaoffice.ae/en/news/2026/january/12-01/the-dfsa-implements-major-updates-to-crypto-token.
- Emirates News Agency (WAM). “DFSA’s Inaugural Tokenisation Regulatory Sandbox Attracts Expression of Interest from 96 Firms.” 2025. https://www.wam.ae/en/article/bjmyg5r-dfsa%E2%80%99s-inaugural-tokenisation-regulatory-sandbox.
- Federal Tax Authority. Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax, with Amendments Including Cabinet Decision No. 100 of 2024. Consolidated version, September 2026.
https://tax.gov.ae/datafolder/Files/Legislation/2026/Law-No-8-of-2017-and-its-amendments–09-2026.pdf. - UAE Ministry of Finance. CARF Readiness Circular. October 2026.
https://mof.gov.ae/wp-content/uploads/2026/10/CARF-Readiness-Circular.pdf.
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