Online Reporter
Nelson Gahadza
Zimpapers Business Hub
The Financial Securities Exchange has received approval from the Securities and Exchange Commission of Zimbabwe to operate an asset tokenisation market under the commission’s regulatory sandbox framework.
This marks a milestone in the modernisation of Zimbabwe’s capital markets.
A regulatory sandbox is a controlled, live-testing environment established by regulators, allowing firms to test innovative products, services, or business models with real consumers for a limited time
It aims to foster innovation while ensuring consumer protection, allowing regulators to understand new technologies before creating tailored regulations
FINSEC is a licensed Alternative Trading Platform (ATP) and a subsidiary of the Escrow Group, launched in 2016 to formalise marginalised market segments. The exchange operates a fully automated electronic platform for the issuance, trading and settlement of securities, including equities and derivatives.
Asset tokenisation refers to the process of converting rights or economic interests in physical assets into digital tokens that can be issued, held, traded and settled on regulated digital market infrastructure.
Unlike cryptocurrencies, asset tokens are fully backed by identifiable underlying assets and are issued within established legal, custodial and regulatory frameworks.
FINSEC becomes the first regulated market operator in Zimbabwe to offer a formal, supervised platform for the tokenisation of real-world assets and the initiative will begin with property assets and expand into other productive asset classes over time.
The approved tokenised asset market infrastructure is designed to unlock liquidity from traditionally illiquid assets, lower barriers to investment through fractional ownership, and broaden participation in capital markets for both local and diaspora investors.
FINSEC chief executive Mr Collen Tapfumaneyi said in a statement that the approval by SecZim represents a critical step forward for Zimbabwe’s financial markets.
“The asset tokenisation allows us to bring real economic assets such as property and livestock into a regulated digital marketplace where they can be transparently issued, traded, and settled, with strong investor protections in place,” he said.
Under the approved framework, he said FINSEC will operate a regulated platform that supports the full lifecycle of tokenised assets, including origination, due diligence, issuance, trading, settlement, custody and reporting.
“The exchange will utilise a secure, blockchain-enabled platform to record all token issuances and transactions, providing immutable audit trails, integrated compliance checks and robust custodial controls,” he said.
He added that the platform will also leverage smart contracts and programmable compliance to automate regulatory requirements while preserving strong investor protections and regulatory supervision.
“This structure enables real-time oversight by the regulator and allows market participants to operate within a transparent, tamper-resistant digital infrastructure,” said Mr Tapfumaneyi.
According to FINSEC, the first asset classes approved for tokenisation include income-generating and development property, with each tokenised offering backed by verifiable assets, independent valuations, insurance cover where applicable and trustee or custodian oversight.
Key features of FINSEC’s tokenisation model include fractional ownership, allowing investors to participate with lower minimum investment amounts, transparent disclosures and regular performance reporting, regulated secondary trading to provide liquidity, escrow-based settlement and segregation of investor funds and full know-your-customer (KYC), anti-money laundering (AML) and investor suitability controls.
SECZim’s sandbox framework enables it to monitor emerging risks, assess regulatory adequacy and ensure investor protection before innovations are rolled out more broadly across the market.
The sandbox approval allows the FINSEC exchange to pilot asset tokenisation while ensuring that operational, legal and market risks are identified and mitigated at an early stage.
Mr Tapfumaneyi said the platform would expand access to capital and investment opportunities.
“For asset owners and issuers such as property developers, farmers and agribusiness operators, the tokenisation market offers an alternative capital-raising channel that complements traditional bank financing.
“For investors, it provides access to asset-backed investment opportunities that were previously out of reach due to high capital requirements or illiquidity,” he said.
Market analysts view the approval as a significant step toward deepening Zimbabwe’s capital markets and channelling savings into productive sectors of the economy.
“The approval for FINSEC to operate an Asset Tokenisation Market signals regulators’ commitment to fostering responsible financial innovation while maintaining market integrity, investor protection and financial stability,” said one capital market participant.
FINSEC is expected to launch its first pilot tokenised asset offerings in due course, following the finalisation of issuer onboarding and investor education initiatives under the sandbox framework.
