The concept of tokenizing real-world assets (RWAs) has gained significant attention in recent years, with many experts predicting it will become a trillion-dollar market. However, the current state of RWA tokenization remains speculative due to issues with enforceable rights, controlled transfer, and servicing.
The UAE is taking a different approach to RWA tokenization by treating it as a regulated financial product rather than a crypto experiment. The Dubai Land Department has launched Phase II of its Real Estate Tokenization Project, which aims to make tokenized real estate scalable by providing a regulatory and institutional framework.
Other jurisdictions are also taking steps to establish themselves as hubs for RWA tokenization. For example, the DIFC (Dubai International Financial Centre) has launched a dedicated tokenization Regulatory Sandbox, drawing 96 expressions of interest from serious firms looking for a supervised pathway.