Advancing Digital Trade 2025

Regulators can improve TradeTech innovation by: –Developing comprehensive frameworks for institutional-grade stablecoins in trade, including licensing, reserve requirements and cross- border recognition –Using bilateral economic agreements such as CEPA to define mutual recognition standards for digital payments –Setting clear adoption targets for digital bank guarantees with measurable milestones –Publishing guidelines on standardization (such as URDG 758 compliance) and procedures for converting legacy paper guarantees to digital formats Successfully transforming these infrastructure components would unlock substantial capital currently trapped in inefficient processes while reducing settlement risk and fraud exposure. Digital guarantees and payment settlement FIGURE 4 Source: World Economic Forum Stablecoins and digital bank guaranteesSetadoption targets fordigital bank guarantees with measurable milestones Publish guidelines on standar dization and procedur es forconverting legacy paper guarantees todigital formatsDevelop compr ehensive frameworks forinstitutional-grade stablecoins Define mutual recognition standar dsfordigital inter national payments using bilateral economic agreements1 2 3 4Shortened settlement times Impr oved capital efficiency Reduced fraud risksActions that regulators cantake to improve trade payment settlements: Benefits Promote continued experimentation and adoption The sandbox itself demonstrated the value of structured regulator–innovator collaboration in identifying risks, practical solutions and policy gaps. This approach should be institutionalized to support ongoing digital trade transformation. Scaling innovation across an entire economy demands more than a sandbox – it requires clear governance models, iterative rule-making processes and mechanisms to monitor outcomes. Without sustained oversight, innovations risk becoming isolated pilots rather than systemic solutions. Authorities can: –Establish permanent regulatory sandbox tracks for TradeTech with multi-agency oversight to ensure coordination across trade, finance and customs domains –Create clear pathways from successful experimentation to market implementation, including provisional licensing and monitored deployment5.5 Cross-cutting initiatives Advancing Digital Trade: Insights from the UAE TradeTech Regulatory Sandbox 26