Nomura's Laser Digital has invested in ZIGChain to enhance onchain private credit in the UAE, focusing on Sharia-compliant products.
Nomura Group's digital assets arm, Laser Digital, has made a notable investment in ZIGChain, a blockchain based in the UAE, to enhance onchain private credit solutions in the region.
The investment is believed to be in the high single-digit millions.
The collaboration aims to facilitate access to Sharia-compliant financial products in the Gulf, as emphasized by ZIGChain co-founder Abdul Rafay Gadit. He highlighted the importance of this development for improving financial services through cryptocurrency and tokenization.
Following initial discussions with Laser Digital CEO Jez Mohideen, Gadit noted that their close proximity in Dubai—just one kilometer apart—supports their partnership. "Laser is collaborating with us to create one of the largest on-chain products ever seen in the Gulf region," Gadit stated.
The cryptocurrency market is currently navigating a challenging environment, with Nomura having adjusted risk limits at Laser Digital earlier this year due to losses linked to crypto activities. Despite this, Nomura has reiterated its commitment to the crypto sector with a more cautious approach moving forward.
The partnership is set to establish a comprehensive risk management framework for a range of institutional on-chain vault products. Gadit pointed out significant barriers in the private credit market, including limited access to traditional banking for those in need of funds and a lack of awareness among potential investors about available opportunities. "Our goal is to democratize this space," he said.
Dr. Jez Mohideen remarked on the potential of on-chain finance, acknowledging the execution risks involved. He emphasized that ZIGChain brings regional expertise and a strong track record, which will help maintain high institutional risk standards across their offerings. "Our shared vision is to make next-generation asset management products accessible to serious institutional investors," Mohideen added.
