UAE regulated Fuze Finance and Pakistan Asset Manager to tokenize investment products
Regulated digital assets infrastructure provider, Fuze Finance, and HBL Asset Management Limited, a wholly owned subsidiary of Pakistan’s largest commercial bank, HBL, will jointly explore the tokenization and offshore distribution of investment products for Pakistani diaspora investors across the world as part of a recently signed MOU (Memorandum of Understanding) . The agreement is at the exploratory stage only, future product launch would be subject to legal assessment, regulatory approvals and definitive agreements between the parties.
Pakistani diaspora estimated at 13 million could access selected investment products such as mutual funds, REITs ( real estate investment trusts) and other eligible yield generating investment assets through tokenization. Both companies will initially develop a proof of concept to test the technical, operational and regulatory requirements of the model. This will include investor eligibility, KYC and AML controls, custody arrangements, settlement, and the issuance, holding, transfer and redemption of tokenized assets. Potential subscription and settlement flows could include fiat currencies and selected stablecoins, subject to applicable regulatory requirements.
HBL Asset Management Limited will identify and structure suitable products for potential tokenisation. Fuze will enable the regulated digital asset infrastructure and distribution layer required to make those products available through compliant channels.
PwC expects global tokenized fund assets under management to grow at a compound annual rate of 41% to reach $715 billion by 2030, as asset managers increasingly explore how tokenization can improve the distribution and operation of investment products.
Mohammed Ali Yusuf (Mo Ali Yusuf), CEO and Co-Founder of Fuze Finance noted that tokenization provides investors with better access to regulated financial products while maintaining institutional standards. He explained, “This collaboration with HBL Asset Management Limited allows us to expand access to high-quality investment products through digital asset rails, with compliance, investor protection, and regulatory requirements built in from the outset.”
Mr. Mir Adil Rashid – CEO HBL Asset Management Limited, added, “Tokenization can create new channels for asset managers to reach eligible investors, potentially beyond their domestic markets. We believe there is a sizable opportunity to connect investor audiences across corridors, with the potential for established investment products to be offered through tokenization in an accessible, secure and compliant way. We look forward to this collaboration with Fuze, a business which provides the robust regulated digital asset infrastructure required to meet our own high institutional standards.”
