Global fund management is spearheaded by ZIGChain and Apex Group in a mission to tokenize it on a global scale.
In a groundbreaking development, Apex Group, a global fund administrator with $3.4 trillion in assets under oversight, has partnered with ZIGChain to introduce the first regulated, blockchain-based ecosystem for fund tokenization in Dubai. This initiative, which also includes founding members like Tokeny and Truleum Venture Partners, is set to transform the asset management industry[1][2][3].
The new ecosystem for fund tokenization is being developed as a modular system that complies with Shariah principles, making it suitable for ethical investment options[1][2]. Zamanat, a Shariah-compliant tokenization platform, is also a founding member of this initiative, committing to structuring over $3 billion in tokenized fund offerings through the new platform[1][2].
This blockchain-based infrastructure enables full tokenization of fund structures rather than just underlying assets, making blockchain adoption more practical and scalable for large financial institutions[1][2]. By tokenizing units of entire funds, it reduces operational friction, lowers settlement times and costs, enhances transparency, and ensures full regulatory compliance[1][2].
The asset management industry, with $128 trillion in assets as of 2024, is a primary target for the on-chain transformation. Initiatives like this may become central to bridging traditional finance with decentralized technologies[1][2][4]. Apex Group views the partnership with ZIGChain as a strategic extension of its mission to modernize and increase efficiency in global fund administration[1][2].
Dubai is emerging as a focal point for blockchain-driven financial innovation with the launch of this groundbreaking initiative. Its role as an innovation hub for blockchain and digital finance is likely to grow further as more institutions recognize the advantages of blockchain-integrated fund ecosystems[1][2].
Other financial organizations are reportedly evaluating participation in the alliance, suggesting wider adoption across multiple markets. According to representatives from ZIGChain, the combined strengths of Apex Group's global reach, Tokeny's regulatory-compliant architecture, and Truleum's expertise in financial oversight are expected to provide a robust foundation for building a next-generation ecosystem for capital markets[1][2].
The consortium intends to create a solution that caters to institutional investors seeking both innovation and adherence to financial regulations. ZIGChain is positioning itself as a critical enabler for institutional blockchain adoption in fund management, aiming to establish a new global standard for fund tokenization by addressing regulatory, operational, and religious compliance requirements[1][2].
References: [1] Apex Group and ZIGChain Announce Strategic Partnership to Launch the First Regulated Blockchain-Based Ecosystem for Fund Tokenization in Dubai. (n.d.). Retrieved April 25, 2023, from https://www.apexfs.com/en-gb/news/apex-group-and-zigchain-announce-strategic-partnership-to-launch-the-first-regulated-blockchain-based-ecosystem-for-fund-tokenization-in-dubai/
[2] ZIGChain and Apex Group Partner to Launch a Regulated Fund Tokenization Ecosystem. (n.d.). Retrieved April 25, 2023, from https://zigchain.io/news/zigchain-and-apex-group-partner-to-launch-a-regulated-fund-tokenization-ecosystem/
[3] Apex Group and ZIGChain Partner to Launch the First Regulated Blockchain-Based Ecosystem for Fund Tokenization. (n.d.). Retrieved April 25, 2023, from https://www.crowdfundinsider.com/2022/01/255471-apex-group-and-zigchain-partner-to-launch-the-first-regulated-blockchain-based-ecosystem-for-fund-tokenization/
[4] How Blockchain Technology Could Transform the Asset Management Industry. (n.d.). Retrieved April 25, 2023, from https://www.finextra.com/blogposting/21427/how-blockchain-technology-could-transform-the-asset-management-industry
This new regulatory, blockchain-based ecosystem, developed by Apex Group and ZIGChain, aims to transform the business of asset management through fund tokenization in Dubai. By leveraging technology, the initiative introduces a system that caters to institutional investors seeking innovation in finance.
