UAE: Liv Digital Bank enters tokenization deal targeting Gen Zs

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As the tokenization wave gathers steam, mainstream financial entities are upping the ante, inking partnerships, and rolling out commercial offerings for their clients.

Liv Digital Bank, a subsidiary of United Arab Emirates banking giant Emirates NBD, is the latest in a long line of firms to begin exploring tokenization offerings. The digital bank recently announced that it is dipping its toes in the space via a partnership with real-world asset (RWA) tokenization firm Ctrl Alt.

Described as the “first digital bank” in the UAE, Liv is keen to remain at the leading edge of financial innovation in the region by increasing the size of its bet in blockchain-based tokenization.

“Liv is the first bank in the UAE to explore offering tokenised real-world asset investing opportunities to customers, and we are delighted to co-partner with a leading infrastructure provider such as Ctrl Alt for this initiative,” remarked Marwan Hadi, an executive at Emirates NBD.

The primary motivation of Liv to dabble in RWA lies in its plans to cater to the growing demands of younger millennials and Gen Zs in alternative financial assets. A chunk of Liv’s customers comprises a younger demographic with an aversion to traditional assets, prompting the firm to explore new offerings.

Liv’s parent company has partnered with the Dubai Chamber of Commerce for a trade finance solution. As the second largest bank by market capitalization, Emirates NBD has tested the waters with a DLT-based anti-fraud solution with relative success.

Rather than build its RWA offering from scratch, Liv will turn to blockchain firm Ctrl Alt for design, but technical details remain sparse. For its part, Ctrl Alt has cut its teeth in shipping tokenization offerings, creating revenue-generating infrastructures for its long list of enterprise clients.

“As the innovation incubator in Emirates NBD Group, Liv has always remained at the forefront of digital innovation, seeking to collaborate with partners to explore and experiment with technologies that are in demand globally and in the UAE,” said Marwan.

Marching toward tokenization

As the tokenization steamtrain hurtles ahead, several studies claim that growing interest may push blockchain revenues by up to 2,300% before the end of 2030.

A January report predicted that tokenized real-world assets could climb to a $15 trillion market before the decade’s end but still grapple with significant hurdles.

Outside of private enterprises, governments are scrambling legislation to prepare for the incoming tokenization wave, with Hong Kong leading the pack in this regard.

Watch: Tokenizing assets on a scalable blockchain