New Zealand’s
Financial Markets Authority (FMA) published
a 15-page report today (Wednesday) outlining what it learned from its fintech
regulatory sandbox pilot. The numbers tell a more complicated story than the
framing suggests.

Of 24 firms
that submitted expressions of interest when the pilot launched in December 2024, six were admitted to the cohort.

Only one is
identified in the FMA’s published timeline as having reached the market in the
17 months since.

The Pilot’s Flagship Is on
the Block

That firm
is ECDD Holdings, the Easy Crypto subsidiary behind the NZDD stablecoin. ECDD
received the first sandbox exemption and license in December 2025, the FMA said.

In March,
the regulator granted ECDD a first-of-its-kind designation declaring NZDD is not a financial
product. Within roughly ten days, Swyftx, Easy Crypto’s Australian parent, was
reportedly shopping the stablecoin business, according to NBR.

Swyftx then
shut Easy Crypto’s New Zealand exchange on March 31, citing regional
streamlining. The stablecoin business has remained for sale, with demand for
the locally backed NZDD reportedly failing to gain meaningful traction.

The Other Five Firms Are
Still Working Through the System

The
remaining pilot participants are Tandym, a group investing platform, Homeshare,
which proposed fractionalized real estate, Invest Inya Farmer, an agricultural
assets venture, Emerge, a digital banking entrant and IndigiShare, a Māori
capital access platform.

The FMA Chief
Executive, Samantha Barass, said that participants expressed “frustration
with uncertainty, cost, and the steep transition to full licensing.”

“The
sandbox has provided valuable insights into how innovative firms experience our
regulatory system in practice and where more proportionate pathways to market
could support innovation without compromising regulatory standards or consumer protections.”

On-Ramp Lincense Aims to
Address the Bottleneck

The FMA is
now building an “on-ramp” license intended to give innovative firms a
more proportionate pathway to market. The May 27 report confirmed that
workstream and added a multi-year program covering virtual assets and payments.

The agency
also flagged a thematic exploration of artificial intelligence in financial
advice, following its Access to Advice report in March.

Regional
peers including Hong Kong, Singapore and Australia have all
moved on stablecoin or digital asset regimes during the past year, narrowing
New Zealand’s first-mover window.

For now,
the FMA’s signature sandbox outcome remains a stablecoin whose issuer has been
wound down, and whose token is waiting for a new owner.

This article was written by Damian Chmiel at www.financemagnates.com.

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