The project will test the regulatory and operational requirements for using blockchain technology to represent ownership of money market fund assets through digital tokens, according to a statement issued by Granite on Saturday.

The initiative comes as Egypt's non-banking financial sector moves toward greater digitalization, with regulators examining how emerging technologies can be incorporated into financial markets while maintaining investor protection and market stability.

Testing a tokenization framework

Under the project, Granite, a digitally enabled asset management company, will work with Tarmiiz, which specializes in asset tokenization and blockchain solutions, to develop and test an operational model for tokenized money market funds in coordination with the FRA.

The regulatory sandbox is designed to allow financial technology applications to be tested in a controlled environment before wider commercial deployment.

The project will examine the regulatory and operational requirements for recording and managing ownership of tokenized fund assets, as well as their potential use in financial-market transactions.

According to the companies, potential applications include improving the recording and verification of financial asset ownership and allowing tokenized assets to be used in transaction settlement.

Blockchain enters Egypt's asset-management debate

The initiative reflects growing international interest in asset tokenization, which involves representing ownership or rights to an underlying financial or real-world asset through digital tokens recorded on blockchain networks.

For asset managers and capital markets, tokenization could potentially streamline ownership records, settlement, and transfers, although its wider adoption depends on regulatory, technological, and market considerations.

Hisham Akram, founder and CEO of Granite Financial Holding, said the project would allow the company to explore technology-based approaches to liquidity management and investment products while working within the regulatory framework established by the FRA.

Amr Soliman, chairman and co-founder of Tarmiiz, said the sandbox provides an opportunity to test asset tokenization in a regulated environment and assess its potential for commercial use.

The companies said the project is intended to help determine a viable regulatory and operational framework for tokenized money market funds, rather than constitute a broader commercial rollout at this stage.

The initiative builds on the FRA's establishment of Egypt's first regulatory sandbox for the non-banking financial sector under Decision No. 163 of 2024. The sandbox allows fintech companies to test innovative financial applications and business models under regulatory oversight before wider market deployment, as part of the authority's efforts to advance digital transformation, financial inclusion, and consumer protection.

The Granite-Tarmiiz project extends the sandbox framework to asset management by testing whether ownership of money market funds can be recorded and managed through blockchain-based digital tokens. It also follows Granite's receipt of an FRA fintech licence in January 2026 for its Granite Money Market Account application, amid broader regulatory efforts to digitize services and expand the use of financial technology across Egypt's non-banking financial sector.

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