GRANITE, Tarmiiz join FRA Sandbox to test money market fund tokenization

GRANITE Financial Holding and Tarmiiz Information Technology have joined Egypt’s Financial Regulatory Authority (FRA) Regulatory Sandbox to test a model for tokenizing money market fund assets, marking an early step toward exploring blockchain technology in Egypt’s asset management sector.

The initiative will examine the regulatory and operational requirements for applying asset tokenization to money market funds in the Egyptian market. The project will test how blockchain-based systems could be used to record and manage ownership of financial assets within a regulated environment.

The move is aligned with the FRA’s broader efforts to support financial technology innovation and digital transformation across Egypt’s non-banking financial services sector.

Ahmed Khalifa, executive director of the Regulatory Sandbox and chief data officer, said the preliminary approval of the two new projects brings the total number of projects to receive preliminary approval since the Sandbox was launched to nine during its first year.

He added that the Sandbox received more than 50 projects during its first year, while two projects have moved to the actual testing phase.

Khalifa said the figures reflect growing interest among companies and entrepreneurs in testing innovative technology solutions under the FRA’s regulatory framework.

He added that the Sandbox serves as a link between innovation and practical application, supporting the development of new technologies, products and services while helping markets respond more efficiently to changing customer needs.

Under the collaboration, GRANITE will work with Tarmiiz, a technology company specialising in blockchain and asset tokenization solutions, to develop and test an operational model for tokenized money market funds. The companies will coordinate with the FRA to assess the regulatory framework and operational mechanisms required for potential commercial implementation.

The project builds on an existing relationship between the two companies, combining GRANITE’s asset management activities with Tarmiiz’s blockchain infrastructure for registering and managing digital asset ownership.

Hisham Akram, founder and CEO of GRANITE Financial Holding, said the initiative forms part of the company’s efforts to explore the role of technology in liquidity management and investment products.

“The Regulatory Sandbox provides an opportunity to test these models within a controlled framework and evaluate the regulatory and operational considerations associated with their implementation,” Akram said.

He added that asset tokenization is gaining increasing attention globally as financial institutions explore new approaches to capital market infrastructure and asset management.

Amr Soliman, Chairperson and Co-Founder of Tarmiiz, said the project would allow the company to test asset tokenization applications within a regulated environment.

“Testing these models within the Regulatory Sandbox will help identify the operational and regulatory requirements for broader implementation,” Soliman said.

The project’s admission into the FRA Regulatory Sandbox represents a testing phase rather than a commercial launch. It will focus on assessing the regulatory, technical and operational frameworks needed to support the tokenization of financial assets.

Potential applications include improving the recording and management of financial asset ownership and exploring the use of tokenized assets in the settlement of financial transactions.

The results of the testing phase could provide insights into the requirements for wider adoption of tokenization technologies across Egypt’s capital markets and non-banking financial services sector.

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