- ZIGChain is a Layer-1 wealth management blockchain
- Its deal with Truleum would bring tokenized funds to DIFC’s cluster of over 10,000 funds managing more than $700 billion
- The partnership will bring Sharia-law compliant tokenized funds to the Dubai market
The Web3 ecosystem in Dubai is growing rapidly, attracting collaborations across the sector to bring diverse products to the market. On Thursday, September 25, ZIGChain announced the acquisition of a strategic stake in Truleum to bring tokenized funds to the Dubai International Financial Centre (DIFC).
ZigChain is a Layer-1 blockchain that explains itself as a wealth generation infrastructure. Whereas, Truleum is a fund manager licensed by the Dubai Financial Services Authority (DFSA).
Commenting on the development ZIGChain co-founder Rafay Gadit said, “we are building the rails for a new generation of investment products that meet the highest global standards while also reflecting the region’s growing demand for Sharia-aligned and fully transparent structures.”
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Tokenized funds offer ownership of shares in an investment fund in the form of blockchain-based digital tokens. These products enable fractional ownership of digital tokens and transparent, 24/7 trading through automated smart contracts.
The tokenized funds these two entities plan on bringing to the Dubai market will be Sharia-compliant, the official announcement said. This means, these digital products will not be tied to alcohol, pork, pornography, gambling, or weapons.
ZIGChain said that in the initial phase of the launch of these tokenized funds, only professional and institutional investors will be allowed to engage with them. After assessing the response with larger-scale investors, the companies would plan a broader inclusion for participants.
“We founded Truleum to build fund infrastructure that is digital by design, transparent by default, and globally accessible,” said Dolly Ramaiya, Founder and CEO of Truleum Partners. “By joining forces with ZIGChain, we are bringing that vision to life, combining DIFC’s global credibility with the possibilities unlocked by blockchain technology.”
The investment demand for tokenized funds had already hit $290 billion in 2024, a group by the Boston Consultancy Group (BCG) had said last year. BCG had attributed this surge to institutions attracting new investor pools and enhancing business offerings. The BCG also shared estimates that the assets tied to tokenized funds could reach one percent of global mutual funds in the next seven years, with the value exceeding the $600 billion mark by 2030.
