Andrew Forson of DeFi Technologies explains how sovereign ambition, regulatory clarity, and digital liquidity are turning blockchain from a niche asset theme into the invisible infrastructure powering the GCC’s future financial system.
Digital asset innovation is no longer operating at the margins of global finance — it is steadily integrating into the core of capital markets. Nowhere is this shift more visible than in the Middle East, where forward-looking regulation, sovereign ambition, and deep pools of capital are converging to accelerate the adoption of tokenization across financial instruments.
From sovereign debt to exchange-traded products, tokenisation is moving beyond pilot projects and into practical deployment, reshaping how liquidity, market access, and settlement efficiency are understood. Investors ranging from sovereign wealth funds to family offices are exploring how digital infrastructure can unlock flexibility in traditionally illiquid asset classes as regional financial centres position themselves as global hubs for blockchain-enabled finance.
Andrew Forson, President, DeFi Technologies, shares his perspective on how tokenisation is evolving from a niche “digital asset” concept into foundational market infrastructure. Forson discusses the regulatory alignment required for scale, the GCC’s role in shaping global digital capital flows, and why the future of finance may see blockchain operating quietly in the background, powering markets without investors even realising it.
Interview Excerpts:
How do you see the Middle East responding to digital asset innovation, especially as the UAE positions itself as a digital-first nation?
The Middle East has responded better than almost any other region. It has effectively positioned itself as a safe haven for digital asset businesses. Regulatory frameworks are being designed to be both robust and practical, making them easier for companies to operate within. Beyond Dubai and ADGM, jurisdictions like Qatar, Bahrain, Oman, and Saudi Arabia are actively competing to attract tokenised capital markets activity. The region’s appetite for innovation and business makes it one of the most dynamic hubs globally.
How soon could tokenisation of sovereign assets, debt, and public securities move from pilot projects to scaled infrastructure in the GCC?
We’re seeing sovereign debt issuances being tokenised. Tokenisation improves market efficiency — faster settlement, improved transparency, and enhanced security.
“Over time, tokenisation won’t be seen as a separate asset class but rather as the technology layer underpinning traditional financial instruments, much like the internet became embedded across industries rather than being its own category.”
What advantages do tokenised ETPs and ETFs offer investors compared to traditional structures?
Tokenised ETPs and ETFs open access to entirely new liquidity pools, especially stablecoin and digital asset holders. Traditional funds are often limited by geography and brokerage access. Tokenised versions allow investors globally — whether in Africa, Asia, or the Middle East — to participate more easily and at lower transaction costs. This significantly democratises investment access while increasing liquidity and transparency.
How might sovereign wealth funds and family offices in the Middle East use tokenisation to redesign capital deployment?
Tokenisation enhances liquidity in traditionally illiquid investments. Private equity or venture investments often lock capital for 7–15 years. With tokenisation, ownership stakes can be traded more easily through regulated secondary markets, reducing friction and transaction costs. This flexibility is highly relevant for sovereign wealth funds and family offices looking to manage portfolio liquidity more dynamically.
What regulatory and infrastructure developments are still needed for tokenised securities to become mainstream in GCC capital markets?
The key is aligning securities laws with technological capabilities. Regulators should focus on clear licensing pathways, strong investor protection standards, and efficient KYC/AML processes. If regulation is too slow or unclear, innovation moves into unregulated markets. Cross-border regulatory cooperation is also critical because blockchain technology inherently transcends national boundaries.
Do you see tokenisation becoming the default backend of capital markets within five years?
Investors may not even realise trades are settling on blockchain. Traditional financial institutions are upgrading infrastructure, while user interfaces hide technical complexity like wallets and keys. The shift will be evolutionary rather than disruptive — tokenisation becoming the settlement layer rather than a visible “digital asset” category.
How significant is the Middle East to your company’s global business?
While early in our rollout, the region is central to our expansion strategy. And though it is difficult to quantify due to global investment structures, we work closely with family offices and wealth managers connected to the region. Our activities include digital asset liquidity services and partnerships with institutions such as AMINA Bank, along with a market-making presence in Abu Dhabi. The Middle East is a core strategic market, and engagement continues to expand.