The DIFC Innovation Hub, part of the Dubai International Financial Centre, has initiated a collaborative project with Swiss wealth management firm Julius Baer and financial market infrastructure provider Euroclear.
The venture focuses on addressing the complexities of estate planning in the digital asset sphere.
The project aligns with the UAE’s vision to enhance the economic impact of family businesses, particularly in the realm of managing burgeoning portfolios of tokenised and digital assets. It involves a joint effort by specialists in various fields to develop technological solutions for the effective management of digital asset inheritance.
Over a three-month period, experts from the DIFC Innovation Hub, Julius Baer, and Euroclear will engage in an intensive research and development phase. The outcome is intended to be a white paper presenting solutions for succession planning, with a focus on tokenisation in the context of multi-generational wealth transfer. This white paper will aim to offer insights and strategies that could be applied in similar contexts globally.
The initiative is underpinned by data suggesting a significant wealth transfer in the Middle East over the next decade, amounting to around AED 3.67 trillion ((US$ 1 trillion). Currently, a mere 24% of high-net-worth individuals in the region have comprehensive estate plans, a concern amplified by the rapid adoption of digital assets. This collaboration seeks to address these challenges and streamline estate planning processes.
Mohammad Alblooshi, the Chief Executive Officer of the DIFC Innovation Hub, noted that,
“By bringing together global leading entities across wealth management, financial services providers, tech disruptors and regulators, this newly launched innovation project will help transform one of the largest, underserved markets in the region and open doors to a more inclusive and tech enabled future for family businesses and the wealth management industry.”
Philippe Laurensy, Head of Group Strategy, Product Management and Innovation at Euroclear, added,
“We are extremely pleased to be working with DIFC Innovation Hub and Julius Baer on what we see as a transformative journey to address market gaps and create efficiencies by harnessing the power of tokenisation. By validating and unlocking the benefits of smart contracts we have the potential to redefine the narrative of wealth management, creating solutions that could span generations.”
Given Dubai’s strategic location and DIFC’s role as a key centre for family-owned businesses and affluent individuals, the project is well-positioned to trial innovative solutions in the field of wealth management and inheritance planning. The combined expertise of Julius Baer in wealth transfer advisory and Euroclear’s focus on financial market innovation aims to contribute towards more efficient inheritance planning.