DIFC Partners with Julius Baer and Euroclear to Tackle Digital Asset Inheritance Challenge

{getToc} $title={Table of Contents}

DIFC, Julius Baer, Euroclear develop digital asset estate planning solutions for $1 trillion wealth transfer.

The Dubai International Financial Centre Innovation Hub has launched a collaborative initiative with Swiss wealth manager Julius Baer and global financial infrastructure provider Euroclear to address digital asset estate planning across the Middle East. The three-month research project culminated in a white paper titled "Navigating the Future of Inheritance," published in January 2025, which provides a framework for solving one of the region's most pressing wealth management challenges.

The partnership responds to an estimated USD 1 trillion transfer of generational wealth expected across the Middle East by 2030. High net worth individuals in the UAE alone account for USD 700 billion in assets, representing a 20% increase since 2022. However, inadequate planning threatens to leave billions in limbo during this transition.

The Scale of the Problem

The white paper identifies a USD 50 billion problem embedded within the trillion-dollar transfer. Research projects that USD 49 billion will go unclaimed in the Middle East by 2030 due to inadequate planning and legal complexities. A further USD 123 billion is expected to be held in probate for extended periods, with typical processes lasting up to 12 months. Together, unclaimed and locked-up wealth represents approximately 5% of the total intergenerational transfer.

Despite the magnitude of this impending shift, only 24% of high net worth individuals currently have comprehensive estate plans in place. This coverage gap affects three-quarters of the wealth transfer event, creating significant financial waste and family disruption.

Behavioural Barriers to Planning

The research identifies client reluctance as the single greatest impediment to adoption. Some 73% of wealth holders are unwilling to discuss comprehensive legacy planning scenarios, even with trusted advisors and long-term wealth managers. This psychological barrier surpasses technical or regulatory obstacles.

Over half of surveyed families (53%) believe the inheritance process is too complicated and time-intensive to navigate effectively, particularly when allocating assets across large family networks. Complex family structures compound the issue, with 70% citing them as a core problem and 46% identifying family disputes as barriers to seamless transfers.

Digital Assets Add Complexity

Modern wealth portfolios have transformed from traditional holdings into complex combinations of bank accounts, real estate, alternative investments, securities, collectibles, and increasingly, cryptocurrency. The research found that 29% of Middle East respondents specifically cite crypto-assets as problematic during wealth transfers, compared to 24% globally. With 23% of UAE residents already holding digital assets, this challenge will intensify.

Unlike traditional bank accounts or property deeds, digital assets often exist outside conventional probate systems. When an owner dies, heirs typically cannot access cryptocurrencies, NFTs, or tokenised securities without private cryptographic keys. Blockchain networks have no built-in inheritance mechanism or central authority to facilitate recovery—an estimated 3.8 million bitcoins worth over USD 390 billion are permanently lost due to inadequate succession planning.

Technology-Enabled Solutions

The white paper emphasises that digital technologies—specifically artificial intelligence, smart contracts, distributed ledger technology, and tokenisation—offer solutions to reduce friction and ensure secure asset transfers. Smart contracts enable programmable inheritance through conditional execution, multi-signature authorisation, and embedded compliance checks.

The DIFC has already begun implementation through its Digital Assets Will, launched in October 2024. Built on Hedera distributed ledger technology, the system supports major cryptocurrencies and will expand to NFT standards. Users retain complete control over assets during their lifetime, with cryptographic access maintained exclusively by the testator until death verification triggers distribution to beneficiaries.

Partner Expertise and Market Context

Julius Baer brings over 125 years of family wealth management expertise and became the first wealth manager in the DIFC to secure licensing for digital asset custody services. Euroclear operates as a trusted post-trade infrastructure serving over 2,200 institutions globally, having processed digital securities issuance for the World Bank, AIIB, and Doha Bank.

The initiative operates within a supportive ecosystem. The DIFC hosts over 120 family offices managing USD 1.2 trillion in assets and more than 640 foundations. With 2026 declared the "Year of the Family" by the UAE government, the DIFC Family Wealth Centre will expand during Dubai Future Finance Week in May 2026, focusing on next-generation leadership development and family governance best practices.