The pilot will test blockchain-based issuance, transfer and redemption of money market fund units under regulatory oversight.
Tarmiiz Information Technology and Granite Financial Holding have received preliminary approval from Egypt’s Financial Regulatory Authority to test money market fund tokenisation inside the FRA Regulatory Sandbox.
The pilot will use a digital platform built around asset tokenisation, representing investment fund units on a controlled electronic ledger and testing how they can be issued, transferred, redeemed and managed throughout their lifecycle.
Tarmiiz will provide the blockchain and tokenisation infrastructure, while Granite will explore the model as part of its work on technology-enabled liquidity management and investment products.
The project is also intended to test whether tokenisation can make fund administration more efficient and transparent, while giving the FRA a controlled environment in which to assess the operational, regulatory and investor-protection requirements involved.
The approval remains preliminary and applies only within the Regulatory Sandbox. It does not authorise either company to launch tokenised money market funds commercially across the wider market.
More than 50 projects were submitted to the FRA Sandbox during its first year. Nine have received preliminary approval so far, while two have progressed to actual testing.
If the model proves workable, similar infrastructure could eventually be tested for other financial assets, including applications designed to strengthen digital ownership records and support the settlement of financial transactions.
The latest approvals come ahead of the annual FRA Sandbox Summit on September 7th, which will review the programme’s first year and showcase fintech projects being developed for Egypt’s non-banking financial sector.