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Nomura's Laser Digital backs ZIGChain for on-chain private credit in UAE

Created at 5 Aug · 1:31 PM1 source↑ Market-relevant
IN SHORT

Laser Digital, the digital assets arm of Nomura Group, has invested in UAE-based ZIGChain to streamline private credit markets across the Gulf States, including Sharia-compliant offerings. The partnership aims to democratize access to financial services through institutional on-chain vault products.

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Who's Involved

Laser Digital
Digital assets arm of Nomura Group, investing in ZIGChain
ZIGChain
UAE-based Layer1 blockchain partnering with Laser Digital
Abdul Rafay Gadit
Co-founder of ZIGChain
Jez Mohideen
Co-founder and CEO of Laser Digital
Nomura Group
Japanese financial services firm, parent of Laser Digital
Nomura's Laser Digital backs ZIGChain for on-chain private credit in UAE

↳ Why This Matters

This partnership signifies institutional backing for tokenizing real-world assets and expanding private credit markets in the Middle East, potentially democratizing access to finance through blockchain technology.

Key facts

  • Laser Digital, Nomura Group's digital assets arm, has invested in ZIGChain.
  • ZIGChain is a UAE-based Layer1 blockchain.
  • The partnership aims to streamline private credit markets in the Gulf States.
  • Sharia-compliant offerings will be part of the initiative.
  • The collaboration will focus on institutional on-chain vault products with a risk framework.

Laser Digital, the digital assets division of Japan's Nomura Group, has made a strategic investment in ZIGChain, a United Arab Emirates-based Layer1 blockchain. This partnership is designed to enhance and streamline private credit markets across the Gulf States, with a specific focus on including Sharia-compliant offerings.

The exact financial terms of Laser Digital's investment were not disclosed, but it is understood to be in the high single-digit millions. ZIGChain co-founder Abdul Rafay Gadit highlighted that the collaboration aims to democratize access to financial services by addressing the challenges in the Middle East's private credit market, where both borrowers and lenders face difficulties in connecting and navigating high fees.

Laser Digital CEO Jez Mohideen stated that his firm has been observing the private credit sector and recognizes the potential of on-chain finance, while also acknowledging the often-underestimated execution risks. He emphasized that Laser Digital's role as an investor and partner is to apply its institutional-grade risk frameworks to ZIGChain's efforts, supporting the goal of making next-generation asset management products accessible for significant institutional capital.

This move by Laser Digital follows a period where Nomura had tightened risk limits at the division due to crypto losses impacting quarterly profits. However, Nomura indicated a continued commitment to the crypto space with a more cautious strategy. The partnership with ZIGChain is seen as a step in this direction, delivering a comprehensive risk framework and governance for a pipeline of institutional on-chain vault products.

Frequently asked questions

ZIGChain is a Layer1 blockchain based in the United Arab Emirates that is working with Standard Chartered and Apex Group.

Laser Digital is the digital assets arm of the Japanese financial services firm Nomura Group.

The partnership aims to streamline private credit markets in the Gulf States, including Sharia-compliant offerings, and democratize access to financial services through institutional on-chain vault products.

The market faces a two-sided problem: those needing money struggle to raise it from banks, and those with money are unaware of opportunities or face high fees and barriers to entry through large funds.

What Happens Next

01Laser Digital and ZIGChain will develop institutional on-chain vault products.
02The partnership aims to streamline private credit markets across the Gulf States.

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Cadence

How It Developed

Laser Digital invested in ZIGChain.
The partnership aims to streamline private credit markets in the Gulf States.
Sharia-compliant offerings will be included.
The partnership will deliver a risk framework and governance for on-chain vault products.
ZIGChain co-founder Abdul Rafay Gadit stated the goal is to democratize private credit access.
Laser Digital CEO Jez Mohideen noted the importance of institutional risk frameworks in on-chain finance.

Sources

T1
Noumura’s Laser Digital backs ZIGChain for onchain private credit push in UAECoinDesk

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