Fuze Finance, a regulated digital assets infrastructure provider, and HBL Asset Management Limited, a wholly owned subsidiary of Pakistan’s largest commercial bank, Habib Bank Limited (HBL), have signed a Memorandum of Understanding (MoU) to explore the tokenisation and offshore distribution of investment products for Pakistani diaspora investors worldwide. The proposed collaboration will examine how overseas Pakistanis could gain access to selected investment opportunities, including mutual funds, real estate investment trusts (REITs) and other eligible yield-generating assets through tokenised financial products. The initiative is aimed at examining new distribution channels for established investment products by combining HBL Asset Management’s investment structuring capabilities with Fuze Finance’s regulated digital asset infrastructure. However, the agreement remains at an exploratory stage, with both companies planning to assess the feasibility of the proposed model before considering any potential product launch.
The collaboration is particularly focused on the Pakistani diaspora, which is estimated to comprise approximately 13 million people living across different countries. The companies intend to explore whether tokenisation could make selected investment products more accessible to eligible overseas Pakistani investors through compliant digital channels. Under the proposed arrangement, HBL Asset Management Limited will identify and structure suitable investment products for potential tokenisation, while Fuze Finance will provide the regulated digital asset infrastructure and distribution layer required to make these products accessible. The initiative could create additional opportunities for asset managers to reach investors beyond domestic markets while allowing eligible investors to explore financial products through digital platforms and infrastructure.
The proposed initiative comes as financial institutions and asset managers increasingly examine tokenisation as a way to change how investment products are issued, distributed, held and transferred. Tokenisation involves representing ownership or financial interests in assets through digital tokens recorded on blockchain-based infrastructure. Depending on the structure and applicable regulations, this approach can support different aspects of investment operations, including asset issuance, transfers, settlement and redemption. The companies are examining how these capabilities could be applied to conventional investment products such as mutual funds and REITs, rather than limiting digital asset infrastructure to cryptocurrencies and other standalone virtual assets. According to figures cited by the companies from PwC, global tokenised fund assets under management are expected to grow at a compound annual growth rate of 41%, reaching approximately $715 billion by 2030. This projected expansion reflects increasing interest among asset managers in using tokenisation to improve investment product distribution and operational processes.
As an initial step, Fuze Finance and HBL Asset Management will develop a proof of concept to assess the technical, operational and regulatory requirements associated with the proposed model. The assessment will cover several important areas, including investor eligibility, Know Your Customer (KYC) procedures, Anti-Money Laundering (AML) controls, custody arrangements and settlement processes. The companies will also examine the requirements for issuing, holding, transferring and redeeming tokenised assets to determine how the proposed investment structure could operate within applicable regulatory frameworks. Potential subscription and settlement arrangements may involve traditional fiat currencies as well as selected stablecoins, subject to relevant regulatory requirements. These considerations will be central to determining whether the proposed model can provide an appropriate level of investor protection, operational reliability and regulatory compliance.
Mohammed Ali Yusuf, also known as Mo Ali Yusuf, Chief Executive Officer and Co-Founder of Fuze Finance, said tokenisation could improve investor access to regulated financial products while maintaining institutional standards. He said the collaboration with HBL Asset Management would allow the companies to explore wider access to investment opportunities through digital asset infrastructure, with compliance requirements, investor protection and regulatory considerations incorporated from the beginning. His remarks highlighted the role of regulated infrastructure in connecting established financial products with digital distribution channels and international investor audiences.
Mir Adil Rashid, Chief Executive Officer of HBL Asset Management Limited, said tokenisation could create additional distribution channels for asset managers seeking to reach eligible investors beyond their domestic markets. He highlighted the potential to connect investor groups across different markets and enable established investment products to be offered through accessible, secure and compliant digital structures. Rashid also expressed interest in the collaboration with Fuze Finance, noting the importance of having regulated digital asset infrastructure capable of meeting the institutional standards required by HBL Asset Management.
For Fuze Finance, the proposed partnership forms part of its broader effort to develop regulated infrastructure connecting digital assets with the global financial system. Its role in the collaboration would focus on providing the technology and distribution framework required for potential tokenised investment products. HBL Asset Management, meanwhile, would contribute its experience in identifying and structuring investment products that may be suitable for this approach. The partnership therefore brings together asset management capabilities and digital asset infrastructure to examine a possible model for international investment access.
The companies have clarified that the MoU does not represent a confirmed launch of tokenised investment products. Any future offering will remain subject to legal assessments, applicable regulatory approvals and the signing of definitive agreements between the parties. Fuze Finance and its subsidiaries, including Morpheus Software Technology FZE, are licensed by the Virtual Assets Regulatory Authority (VARA) in the United Arab Emirates as a broker-dealer in virtual assets. The announcement does not constitute an offer or solicitation to purchase or sell virtual assets, provide investment advice or conduct regulated financial activities in any jurisdiction. The companies have also highlighted the risks associated with virtual assets, including price volatility, regulatory uncertainty and the potential loss of value. Investors would need to obtain independent legal, financial and tax advice before making investment decisions.
The proposed collaboration reflects growing interest in applying tokenisation to established financial products and exploring new ways to connect investment managers with international investors. For Pakistan’s financial services sector, the initiative could provide an opportunity to examine how regulated digital asset infrastructure may support the overseas distribution of investment products. Its eventual implementation, however, will depend on the outcome of the proof of concept, regulatory assessments and the ability of both companies to establish a compliant structure for eligible Pakistani diaspora investors.
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