Fuze Finance, a regulated digital assets infrastructure provider, and HBL Asset Management Limited, a wholly owned subsidiary of HBL, the largest commercial bank in Pakistan, have announced that they will jointly explore the tokenisation and offshore distribution of investment products for Pakistani diaspora investors across the world. The announcement follows the signing of a Memorandum of Understanding between the two companies, and it was issued from the United Arab Emirates. The agreement marks an early step towards examining how traditional investment products from Pakistan could be offered to investors living abroad through digital asset technology.
The agreement will particularly look at ways in which the Pakistani diaspora, which is estimated to number 13 million people across the world, could gain access to selected investment products through tokenisation. These products include mutual funds, real estate investment trusts and other eligible yield generating investment assets. Under the proposed arrangement, HBL Asset Management Limited will identify and structure suitable products for potential tokenisation, while Fuze Finance will provide the regulated digital asset infrastructure and the distribution layer required to make those products available through compliant channels. The division of responsibilities reflects the distinct strengths each organisation brings to the exploration.
The companies stated that the opportunity is growing rapidly. PwC expects global tokenised fund assets under management to grow at a compound annual rate of 41 percent to reach US$715 billion by 2030, as asset managers increasingly explore how tokenisation can improve the distribution and operation of investment products. As a first step, the two organisations will develop a proof of concept to test the technical, operational and regulatory requirements of the model. This work will cover investor eligibility, know your customer and anti money laundering controls, custody arrangements, settlement, and the issuance, holding, transfer and redemption of tokenised assets. Potential subscription and settlement flows could include fiat currencies and selected stablecoins, subject to applicable regulatory requirements. Fuze Finance described the initiative as one of the ways in which it is building the regulated infrastructure that connects digital assets to the global financial system.
Mohammed Ali Yusuf, also known as Mo Ali Yusuf, Chief Executive Officer and Co-Founder of Fuze Finance, said, “Tokenisation provides investors with better access to regulated financial products while maintaining institutional standards. This collaboration with HBL Asset Management Limited allows us to expand access to high-quality investment products through digital asset rails, with compliance, investor protection, and regulatory requirements built in from the outset.” His remarks underline the emphasis the company places on regulatory discipline as it extends access to financial products through digital channels.
Mir Adil Rashid, Chief Executive Officer of HBL Asset Management Limited, added, “Tokenisation can create new channels for asset managers to reach eligible investors, potentially beyond their domestic markets. We believe there is a sizable opportunity to connect investor audiences across corridors, with the potential for established investment products to be offered through tokenisation in an accessible, secure and compliant way. We look forward to this collaboration with Fuze, a business which provides the robust regulated digital asset infrastructure required to meet our own high institutional standards.” The companies were clear that the agreement is at the exploratory stage only, and that any future product launch would be subject to legal assessment, regulatory approvals and definitive agreements between the parties. Fuze Finance and its subsidiaries, including Morpheus Software Technology FZE, are licensed by the Virtual Assets Regulatory Authority in the United Arab Emirates as a broker dealer in virtual assets, and the announcement does not constitute an offer or solicitation to deal in virtual assets or an offer of investment advice.
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