Tokenisation: Designing wealth structures for a digital future
Private wealth is moving away from traditional formats. As assets shift off paper and into digital form, investors are rethinking how they store and transfer value across borders.
Over the past two years, tokenisation has gained ground as a practical way to represent ownership of real assets in units that are easier to divide, safeguard and pass on.
Since 2022, the UAE has started rolling out clear regulatory frameworks to support this change. Both DIFC and ADGM now license custody providers for tokenised securities and alternative assets under financial services law, and ADGM’s latest updates have expanded the scope of what custodians can hold and manage under regulated conditions.
This article looks at how these developments are shaping long-term wealth planning, and why custody is becoming central to that shift.
DIFC and ADGM: Building regulated infrastructure
Since 2022, the UAE has started to formalise how digital assets are held and safeguarded. Both DIFC and ADGM now license custodians to hold tokenised equity, structured products and alternative assets like real estate funds and private shares.
This has created a clearer path for private wealth to be held securely, passed on and accessed under controlled conditions. Custody tools can be linked to external systems, allowing for transfers, permissions and oversight without losing control.
Together, these steps are laying the groundwork for digitised capital markets and a more structured way to manage long-term value.
From crypto to capital: Real use cases emerging
Tokenisation is starting to show its value in areas well beyond crypto trading. Family offices are using it to bring flexibility to holdings that were once difficult to divide or transfer. That includes income-producing property, closed-end funds and hard assets such as art or collectibles.
A tokenised stake in a leased commercial building, for instance, can be sold in smaller units, giving family members access to cash flow without needing to liquidate the full asset. High-value art or vintage cars can be held in digital form, shared among heirs, or sold in portions when needed. Private equity interests, which often tie up capital for years, can now be structured more transparently, with access permissions and tracking built in.
This shift makes it easier to involve more people in ownership, manage shared holdings across generations and plan transitions with fewer complications. Tokenised assets that once sat outside formal systems can now be brought under regulated custody with clearer controls over access and transfer.
Wealth planning and succession: New tools for control
Tokenised assets are adding new flexibility to long-term wealth planning. Ownership can now be placed in private vehicles like SPVs or Foundations, with embedded rules on how those holdings are managed or transferred. These structures help preserve intent, provide continuity and reduce the need for probate.
Custody providers can link permissions directly to these vehicles, supporting family agreements, shared access and conditional transfers triggered by events such as death or incapacity. The result is more control with fewer complications, especially for families with multi-jurisdiction estates.
Tokenisation doesn’t replace familiar estate tools. It adds clarity and portability to established structures while keeping their legal foundations intact.
Practical adoption: How families are starting to use it
Some families are already applying these tools in real structures. Instead of maintaining separate setups in each country, they’re using a unified custody framework paired with SPVs, Foundations or DIFC Wills to organise rights and define access.
Tokenised assets are being arranged to reflect tax and legal rules across jurisdictions, without needing to rework the structure every time. This simplifies estate planning for families with heirs in multiple countries or where holdings span legal systems.
When rules on access are already built in, transitions become quicker, clearer and less dependent on local processes. What once took months of paperwork can now be handled within an agreed framework that works across borders.
Banks and custody tech: integration in motion
Banks in the UAE are beginning to work more closely with custody tech firms, connecting their systems to platforms built to safeguard tokenised assets. This lets banks offer the same level of security for tokenised property or private securities as they already do for cash or gold.
The result is a growing number of bank-backed custody solutions that feel familiar to clients but are powered by third-party tech in the background. Some are using white-label models to get to market faster, while keeping the client experience under their own brand.
It is a shift that makes tokenisation feel less like an experiment and more like a service built into the financial system. For investors, it means trusted institutions can now store digital assets to institutional standards, without new processes or platforms to learn.
Why this matters to investors
These are still early moves, but they’re shaping how private wealth is now being managed in practice. Institutional systems are starting to absorb it, giving tokenised wealth a clearer role in long-term planning.
For investors, that means more flexibility in how ownership is recorded, shared or passed on. Structures can reflect family intent, function across borders and stay in place through generational shifts.
It’s not a change in what is being owned, but rather how ownership is being organised, and as the tools improve, they’re making long-term control, portability and cross-border access simpler to build into the structure from the start.
Knightsbridge Group - August 8 2025