Digital finance is gaining pace across Gulf markets as tokenisation frameworks mature and regulated digital settlement tools see wider adoption, according to a new global outlook from Moody’s Ratings.
The report says the region is entering a more advanced phase of digital finance, with blockchain-based infrastructure evolving from an experimental technology into a foundational layer for financial market operations. This shift is increasingly influencing capital allocation, liquidity management and risk controls across Gulf banking and capital markets.
Moody’s highlighted the rapid growth of stablecoins and tokenised deposits as a key driver. Globally, stablecoin settlements rose by 87 per cent in 2025 to reach around $9 trillion annually, underscoring their expanding role in payments, cross-border transfers and intraday liquidity management. These use cases are particularly relevant for Gulf economies, which handle high volumes of international trade, remittances and investment flows.
The report noted that shared digital infrastructure is beginning to blur traditional boundaries between once-distinct segments such as private credit, sustainable finance and emerging market capital flows. Digital platforms are now hosting tokenised US Treasurys and structured credit products, opening new channels for Gulf-based investors to access global assets with faster settlement and improved transparency.
Sustainable finance is also benefiting from digital innovation. Smart contracts can embed environmental performance metrics directly into green and sustainability-linked instruments, supporting more consistent monitoring and disclosure. This aligns with Gulf countries’ economic diversification and energy transition strategies, where investor confidence and credible reporting are critical.
Blockchain adoption grows rapidly
Moody’s said blockchain infrastructure, paired with artificial intelligence, is starting to reshape asset servicing and collateral management. Early adopters of tokenised issuance and blockchain settlement have reported meaningful efficiency gains, although the agency cautioned that realising the full benefits will require continued infrastructure investment and regulatory alignment.
Industry plans suggest more than $300 billion will be spent globally on technology markets by 2030, much of it directed towards data centres, connectivity, digital custody and interoperability tools. Gulf financial centres are expected to play a growing role in shaping institution-grade digital finance infrastructure as part of this investment cycle.
The agency warned that rapid adoption also brings heightened risks. As more value moves onto digital rails, vulnerabilities in smart contracts, custody layers and data feeds increase operational and cyber risks. Fragmentation across blockchains and tokenisation platforms could also constrain liquidity if interoperability challenges are not addressed.
Looking ahead, Moody’s expects Gulf markets to favour digital finance infrastructure that is efficient, secure and interoperable. Regulated stablecoins could gain prominence as settlement assets for tokenised funds and digital securities, while platforms that integrate seamlessly with traditional financial systems are likely to attract deeper liquidity and broader participation.
