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Arab News
14 hours ago
- Business
- Arab News
Pakistani pioneer launches first Islamic blockchain to tap real-world asset boom
KARACHI: Pakistan's pioneering blockchain entrepreneur, Abdul Rafay Gadit, has launched what his team says is the world's first Shariah-compliant Layer 1 blockchain, aiming to capitalize on a record surge in tokenized real-world assets (RWAs) and meet rising demand for Islamic-compliant digital finance tools. ZIGChain, which launched its mainnet beta on Tuesday, is built as a base-level blockchain called a 'Layer 1' that lets developers create apps to trade and manage real-world assets like property, commodities or traditional securities on a blockchain. Putting RWAs on blockchains, known as tokenization, has become one of the fastest-growing areas in crypto and traditional finance. The market is estimated to have surged 260 percent to $50 billion this year as more institutions use blockchain to make trading these assets easier and more transparent. Analysts say the trend reflects how financial institutions are moving real-world assets onto blockchains to improve liquidity and transparency. ZIGChain says it stands out as the first chain purpose-built to meet Islamic finance principles, a set of rules that, among other things, prohibit interest (riba) and excessive uncertainty (gharar), by offering native compliance tools and audit mechanisms for developers and institutions. 'Accessing reliable and transparent investment infrastructure has historically been difficult, not just for retail users, but even for experienced managers,' Gadit, ZIGChain's co-founder, said in a statement marking the mainnet beta launch. 'With ZIGChain, we're taking a meaningful step toward changing that by focusing deeply on real-world assets as the foundation for long-term, scalable wealth generation.' The launch comes at a pivotal moment for Pakistan's crypto industry. Islamabad in March set up an official Crypto Council to regulate the sector for the first time and named Binance co-founder Changpeng Zhao (CZ) as its strategic adviser. Pakistan is estimated to have around 40 million crypto users. Unlike general-purpose blockchains, ZIGChain inherits a ready base of more than 600,000 users and 150 professional fund managers through its link to Zignaly, a licensed social investing platform. This solves what experts often call the 'cold-start problem' for new chains that struggle to attract developers and liquidity in early stages. ZIGChain's ecosystem includes Zamanat, described by its backers as the world's first Shariah-compliant RWA platform, as well as a $100 million fund supported by DWF Labs and other partners to spur development. The project launches with native applications already lined up, including an AI-powered decentralized exchange, a staking service, a lending protocol accepting RWAs as collateral, and a Shariah-compliant DeFi aggregator. 'This mainnet beta launch represents a shift from vision to foundation,' said Bart Bordallo, co-founder and CEO of ZIGChain. 'We've built a high-performance, interoperable architecture that can handle the complex requirements of DeFi, RWA tokenization, and automated investment protocols at scale.' By positioning itself at the intersection of real-world assets, Islamic finance and blockchain technology, ZIGChain aims to serve the massive $4 trillion global Islamic finance market, where a young, digitally savvy Muslim demographic is driving demand for new products. With its launch now underway, ZIGChain will gradually roll out key features like its validator network, token bridges and staking tools, which its founders say will keep the system stable and compliant as more users join.
Yahoo
21-05-2025
- Business
- Yahoo
Altcoin Rotation Is Coming, Expert Says: Will ETH, XRP, Dogecoin Benefit?
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. While Bitcoin (CRYPTO: BTC) trades near its all time high price, Abdul Rafay Gadit, co-founder of ZigChain, believes that the broader crypto market is primed for a shift. What Happened: In an interview with Benzinga, Gadit argued that investors should prepare for a strong rotation into altcoins as macroeconomic pressures ease and interest rates begin to fall. He also named decentralized finance and tokenization as the most undervalued sectors in crypto, citing their real-world utility and long-term growth potential. "Eighty to ninety percent of tokens are down, but Bitcoin has skewed the entire market perception," Gadit said. "Once rate cuts begin and inflation stabilizes, money will flow to other assets as well." While he acknowledged the dominance of Bitcoin in attracting institutional capital, Gadit insisted that altcoins tied to productive use cases will be the next to gain traction. Trending: — no wallets, just price speculation and free paper trading to practice different strategies. Bullish On Tokenization And DeFi Gadit is particularly optimistic about the future of tokenized real-world assets (RWAs). He believes that bringing traditionally illiquid assets such as real estate, private credit, and equities onto blockchain rails will drive the next wave of crypto adoption. "The DeFi sector overall, especially tokenization, is pretty much undervalued right now," he said. "If a real use case of AI or tokenization can lower the operational costs of blockchain, it could be massively disruptive." ZigChain is currently working with Zamanat, a Sharia-compliant RWA tokenization platform, to tokenize $2.5 billion worth of real estate in Dubai over the next three years. "Think of a $15 million family office that usually can't access private credit deals with high entry minimums. Through tokenization, even those chunks can be broken down into $1,000 units and accessed globally," he said. Retail Inclusion And Infrastructure Investment While other platforms like Ondo Finance (CRYPTO: ONDO) focus on institutions, ZigChain is betting on retail adoption. Gadit emphasized that ZigChain is building an all-in-one infrastructure layer that enables tokenized assets, stablecoins, and DeFi products to co-exist seamlessly. "The end user should not even feel that they are working on a blockchain," he said. Gadit also disclosed that ZigChain is investing in acquiring a fund tokenization license from the Dubai International Financial Centre (DIFC), viewing this as a key milestone in legitimizing tokenized asset offerings. "That license alone shows how serious we are. Most serious tokenization players won't even launch their own token for the next five years—they're focused on infrastructure," he Bitcoin To Altcoins: Institutional Appetite Matures Despite ongoing regulatory shifts and geopolitical uncertainty, Gadit is confident that institutional interest in crypto is accelerating. "Every day in Dubai, I meet someone from a large family office or desk who's looking to enter crypto," he said. "It always starts with Bitcoin, but eventually they begin to explore other tokens and asset classes." He added that this institutional behavior, especially after spot Bitcoin ETF approvals, has helped Bitcoin maintain its strength above $100,000. However, Gadit expects a shift: "Barring any black swan events, I think my thesis for the next 12 to 24 months is that the market will do well, and altcoins will catch up." In terms of specific sectors, Gadit highlighted three areas with high long-term potential: Layer-1 blockchains with real use cases, exchange tokens, and tokenized assets. "DEX tokens like Uniswap and Radium will benefit as volumes shift to decentralized trading venues. Exchanges, whether Bitget or Binance, are just buy-and-hold bets for me," he added. Crypto Investing Is Maturing Gadit believes the market is becoming more disciplined in how it evaluates crypto projects. "Gone are the days when you could raise money on promises alone," he said. "Now, revenue and user adoption are the key metrics. Token price is no longer enough." He noted that many high-profile protocols have underperformed due to inflated valuations and poorly designed tokenomics. "It's the fault of the cap table. When investors are already 10x up at launch, you're racing to the bottom." Even with ongoing hype cycles, whether around AI or other narratives, Gadit believes real utility will win out. "We use AI internally to reduce costs and increase margin, but we don't shout about it. The projects that quietly solve real problems will be the ones that last." Read Next: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Image: Shutterstock Send To MSN: Send to MSN This article Altcoin Rotation Is Coming, Expert Says: Will ETH, XRP, Dogecoin Benefit? originally appeared on
