EXCLUSIVE: Dubais Once-elite Racehorse Market Now Open For Fractional Ownership With Digital Tokens

Racehorse investment in the UAE, historically an exclusive market accessible only to the royals and super wealthy, is set for a revolutionary change, with two real-world asset (RWA) tokenisation platforms from Dubai and New Zealand teaming up to offer fractional investment in the equestrian sports.

Tokinvest, the Dubai-based leading marketplace for RWA tokenisation, and DSG Group, a New Zealand-based blockchain-powered tokenisation platform, will offer tokenised investment opportunities in racehorses, stables, and siring rights to open up this traditionally exclusive market accessible to a wider investor base.

The combine’s tokenised ‘syndicated ownership’ model for the sector will also simplify asset management and enhance liquidity by making fractional shares of racehorses transferable, aiming to tap into the UAE’s globally popular and booming equine market.

“The UAE’s equestrian industry is one of the most prestigious in the world, with events like the Dubai World Cup attracting global attention and contributing significantly to the country’s sports economy. Tokenisation has the potential to redefine racehorse ownership by introducing fractional investment, making this traditionally exclusive market accessible to a wider investor base,” Scott Thiel, Co-Founder and CEO of Tokinvest, told Arabian Business.

Thiel said their partnership will leverage blockchain technology to create a seamless, globally accessible investment platform in Dubai’s racehorse sector – known as the ‘King of Sports’.

The DSG Group, which recently partnered with Evolution Stables to tokenise racehorse ownership via digital syndication under the supervision of New Zealand Thoroughbred Racing (NZTR), is set to replicate the model in Dubai in partnership with Tokinvest.

Redefining racehorse ownership

Thiel said the Tokinvest-DSG partnership will roll out a multi-channel strategy to bridge the gap between traditional equestrian investors and the digital asset community.

“By combining storytelling and strategic partnerships, we aim to redefine racehorse ownership for a new generation of investors,” he said.

Sports sector experts said the blockchain-based investment initiative in the horse race sector could be a game changer, as it will lower entry barriers, enabling more investors to participate without the financial burden of full ownership.

This will also enhance liquidity, making traditionally illiquid assets like racehorses tradeable investment opportunities and attracting new capital into the sector, they said

Thiel said: “At Tokinvest, we’re not just embracing this change—we’re driving it.”

He said tokenisation will drastically change the ‘limited’ or ‘exclusive syndicate’ model prevalent historically in the sector by allowing everyone to purchase digital shares in a horse at fractional costs.

“Our focus is on retail investors looking to diversify their portfolios with alternative assets, and institutional investors such as Funds and asset managers seeking exposure to the growing sports and entertainment sector,” he said.

Web3-savvy investors eager for regulated real-world asset (RWA) opportunities will also be the combine’s target group, Thiel said.

Dubai racehorse market
The Tokinvest-DSG partnership will roll out a multi-channel strategy to bridge the gap between traditional equestrian investors and the digital asset community. Image: ITP Media Group

Promoting global investor participation in Dubai’s racehorse sports

The Tokinvest chief executive said the platform will root for global participation as long as investors comply with local and international regulations.

“One of the biggest advantages of tokenisation is its borderless nature. Investors no longer need to be physically in the UAE to own a stake in a high-value racehorse,” he said.

Industry watchers said with blockchain-backed security, transparency, and compliance, investors can buy, sell, or trade ownership stakes digitally.

Dubai’s leadership in Web3 innovation and regulatory clarity makes it the perfect gateway for international investors looking to explore real-world asset tokenisation, they said.

Thiel said Tokinvest has established a network of regulated virtual asset brokers that provide access to 1.6 billion people.

He said the UAE’s progressive stance on digital assets, with clear frameworks for blockchain-based investments, will be a major advantage for the promotion of global investments in Dubai’s equine sector.

“Dubai’s Virtual Assets Regulatory Authority (VARA) is actively shaping the legal landscape for digital asset ownership, making Dubai a global hub for tokenised investments,” he said.

VARA is actively shaping the legal landscape for digital asset ownership, positioning Dubai as a global hub for tokenised investments. Image: Shutterstock

Thiel said Tokinvest will also work closely with asset owners to provide investor protection through bankruptcy and claims remote structures.

He said the partnership will work with industry specialists, those with many years or decades-long track records of successfully managing racehorses, to promote their initiative.

“These highly regarded industry players are well known and trusted in the industry and have an existing audience base,” he said.

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