Egypt’s Financial Regulatory Authority (FRA) has granted preliminary approval for Tarmiiz Information Technology to enter its Regulatory Sandbox with a money market fund tokenization project, in cooperation with GRANITE Financial Holding.
The project will test a blockchain-based platform for digitally representing investment fund units. The companies will work with the FRA to assess how tokenized units could be issued, transferred, redeemed and managed throughout their lifecycle, while developing an operational and regulatory framework for potential commercial use.
Tarmiiz will provide the blockchain and asset tokenization infrastructure. GRANITE is contributing as part of its focus on technology-enabled liquidity management and investment solutions, according to the announcement.
The approval is limited to the controlled Sandbox environment and does not authorize broad commercial deployment. It will allow the FRA to evaluate the technology’s impact on financial asset records, transaction settlement, investor protection and market stability.
The FRA said its Sandbox received more than 50 projects during its first year. Nine received preliminary approval, while two had moved into testing. The GRANITE and Tarmiiz project will now focus on validating the model and determining whether it can become commercially viable.
Source: Waya
