QFC Report Urges Global Regulatory Coordination for Tokenization Growth

The Qatar Financial Centre (QFC) has released a report advocating for a globally coordinated regulatory approach to tokenization, emphasizing its potential to transform financial markets and drive economic value. Co-produced with Global Stratalogues and the Global Blockchain Business Council, the report outlines a strategic vision for real-world asset (RWA) tokenization, calling for cross-border regulatory alignment, infrastructure investment, and public-private collaboration to foster sustainable growth [1].

The report highlights that tokenization, when embedded in a coherent regulatory framework, can expand market access, enhance financial inclusion, and generate tangible benefits across economies. It underscores the importance of interoperability and institutional sandboxes, citing Qatar’s regulatory sandbox as a global best practice. However, it also notes that regulatory progress is uneven, with varying legal definitions and compliance requirements across jurisdictions, which could hinder institutional adoption and cross-border operations [2].

Qatar’s strategy for digital asset development includes selective adoption of cryptocurrency, particularly stablecoins, and collaboration with the Central Risk Authority and the Central Bank of Qatar. The report outlines plans to integrate tokenization into private equity, Sharia-compliant digital asset mechanisms, and Murabaha structure automation to enhance secondary market liquidity through token trading. It also aims to provide venture capital with earlier exit opportunities for investors [1].

The QFC’s Digital Asset Labs have seen participation from blockchain firms such as R3, SettleMint, and The Hashgraph Association. The latter, in partnership with QFC, is exploring innovative use cases, including equity and Sukuk tokenization, real estate tokenization, ESG carbon credits, and loyalty programs. This collaboration includes a $50 million Digital Assets Venture Studio, aimed at advancing Web3 and DLT innovation in Qatar.

The report also highlights recent developments, such as the Qatar National Bank (Singapore Branch) and DMZ Finance securing the first MENA-regulated tokenized money market fund under Dubai Financial Services Authority. This initiative, led by QNB and supported by DMZ’s tokenization infrastructure, represents a significant step in operationalizing tokenized assets in the region.

Experts argue that tokenization must serve a clear purpose—democratizing access and creating real-world value. QFC CEO Yousuf Mohamed Al-Jaida stated that a robust regulatory system combining secure custody, oversight, and practical application is essential for institutional adoption and sustainable market growth. Henk J. Hoogendoorn, Chief Financial Sector Officer at QFC, emphasized that tokenization should be purpose-driven, enabling broader participation and tangible benefits.

The report positions tokenization as a bridge between traditional finance and decentralized finance, with the potential to redefine capital markets and financial inclusion. By digitizing real-world assets, financial institutions can create new investment instruments accessible to smaller investors. The report also references a Ripple and BCG projection that the tokenized RWA market could reach $18.9 trillion by 2033 under a midpoint scenario [2].

QFC’s proactive approach reinforces Qatar’s ambition to become a global hub for digital finance and tokenized asset markets. By aligning with international best practices and fostering innovation within a secure framework, Qatar aims to shape the future of financial technology and expand access to economic opportunities globally.

Sources:

[1] QFC report calls for global tokenization regulation (https://www.cryptopolitan.com/qatar-calls-for-global-tokenization/)

[2] QFC report outlines roadmap for real-world asset tokenisation (https://www.qatar-tribune.com/article/188092/business/qfc-report-outlines-roadmap-for-real-world-asset-tokenisation)