Karachi, Pakistan – DigiEstate, the country’s pioneering Shariah-compliant fintech and proptech startup, has issued an official clarification regarding recent speculation about the listing of its Real Estate Security Tokens (RESTs) on the Pakistan Stock Exchange (PSX). In a detailed statement, the company confirmed that it has not submitted any application for the listing or trading of RESTs on PSX and that any assumptions to the contrary are based on a misunderstanding.
The clarification comes in response to reports and interpretations suggesting that DigiEstate had formally approached the PSX with the intention of listing its tokenized real estate instruments. According to the startup, its earlier engagement with PSX was purely exploratory in nature and aimed at understanding the potential for future trading mechanisms of RESTs within the bounds of Pakistan’s regulatory framework.
DigiEstate explained that this early-stage dialogue with PSX was incorrectly perceived as a formal application for listing. “We would like to emphasize that listing or trading of Real Estate Security Tokens on the Pakistan Stock Exchange is currently not permitted under existing regulatory laws,” the statement read.
The company further clarified that its operations are still in the testing phase under the Securities and Exchange Commission of Pakistan (SECP) Regulatory Sandbox. This controlled environment allows startups and financial innovators to experiment with new business models under regulatory supervision. DigiEstate is collaborating with Magna Engineering for the development and testing of its real estate fractionalization model, which uses blockchain-based tokenization to enable investment in real estate through smaller, more accessible digital units.
As per the SECP’s sandbox protocols, DigiEstate has not been granted approval to scale up its operations or to begin fundraising from the general public. The company reiterated its commitment to compliance and transparency, stating that it is working closely with regulators to ensure adherence to all existing laws and guidelines.
“We regret any unintentional misrepresentation of our regulatory status,” the company said in its statement. “DigiEstate remains focused on successfully completing the SECP Sandbox process and ensuring that all communications going forward are fully aligned with regulatory expectations and public interest.”
The clarification is significant in a climate where tokenization and blockchain applications in real estate are gaining increased attention from investors and regulators alike. The notion of Real Estate Security Tokens—digital representations of fractional real estate ownership secured on a blockchain—has sparked interest for its potential to democratize access to property investments. However, such innovations remain subject to rigorous scrutiny in Pakistan’s evolving regulatory environment.
DigiEstate’s initiative is one of the few in the country actively exploring this frontier under formal regulatory oversight. The clarification underscores the importance of clear communication in the fintech sector, especially when dealing with emerging technologies and financial instruments that intersect with regulated capital markets.
As the SECP continues to evaluate the outcomes of its Regulatory Sandbox, industry observers will be watching closely to see how models like DigiEstate’s evolve and what regulatory frameworks may eventually emerge to support the broader adoption of tokenized real estate in Pakistan.