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 Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term. 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.

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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 Sandbox A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United Read this Term 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.