ZIGChain launches $100M credit fund on blockchain

ZIGChain has launched a new $100 million credit fund that runs entirely on the blockchain. The ZM1 Credit Fund, domiciled in the DIFC in the United Arab Emirates, is now live with its investment tokens issued natively on ZIGChain. ZIG Markets acts as distribution agent for the fund.

In brief:

• ZIGChain launched the $100M ZM1 Credit Fund fully onchain in the DIFC UAE
• The fund generates revenue that is used for buybacks of Ethereum
• This demonstrates the ZIG model of building financial products on blockchain

A flywheel of financial innovation

The model that ZIGChain applies combines three elements: building real financial products on the blockchain, distributing them via ZIG Markets and generating real revenue. That revenue is then used for buybacks of Ethereum, creating a so-called flywheel. This mechanism ensures that the system continues to grow on its own as more products are added.

According to the announcement by ARafayGadit, teams from Umair Tariq and Zamanat Digital are working with Apex Global Group on the execution of the fund. This is not merely a proof of concept, but a fully operational credit fund that is compliant with regulations in the DIFC, a financial centre in Dubai.

What this means for blockchain finance

The launch shows that large-scale financial products worth hundreds of millions of dollars can now run on blockchain infrastructure. Until recently, such large funds were managed exclusively through traditional channels. By doing this onchain, ZIGChain makes it possible for transactions to be more transparent and efficient, while investors have direct ownership of their tokens.

The use of Ethereum for buybacks also ties the project to the broader Ethereum economy. Ethereum was trading at $2.456,09 on Thursday, down 1.8% over the past 24 hours.