Jibrel to launch UAE-regulated blockchain private financing platform
Platform seeks to tokenise assets including bonds, Sukuk, equities and real estate
Jibrel Network, a blockchain-based fintech company headquartered in Zug, Switzerland has launched what it says is the first fully regulated blockchain-powered private financing platform in the UAE, after its recent acceptance into the new ADGM (Abu Dhabi Global Market) RegLab cohort.
The new platform Jibrel.com, seeks to foster open financial systems and digitisation powered by emerging technologies. It says its mission is to tokenise an array of assets (including debt such as bonds and Sukuk, as well as programmable tokenised equities and real estate) in a manner that is borderless, asset class agnostic and customisable for different use cases.
“We are excited to be launching a vertically integrated private lending platform that will take startups from inception to maturity. The platform will increase investor transparency, simplify regulatory oversight and improve liquidity — by providing a streamlined platform to buy, sell and transact startup equity,” said Yazan Barghuthi, Jibrel’s co-founder and CEO.
“In collaboration with ADGM, we successfully settled the first Digital Sukuk with Al Hilal Bank and since then have further explored, researched and developed technologies that can assist in retail debt issuance. Now we have set our sights on tokenising traditional equity,” Barghuthi added.
Jibrel.com will also enable investors of all genres to connect with startups and SMEs, creating new capital formations. As Talal Tabbaa, co-founder and COO of Jibrel, says, “We at Jibrel will collaborate on the technological, regulatory and financial spheres to bring real world equity on-chain, thus redefining how companies are established, funded and managed — and ultimately transforming the global capital markets in the process.”
Private financing platforms are set to completely change with the utilisation of blockchain technology. Private financing has skyrocketed in popularity over the past decade or so. There are more than 375 private financing platforms to date. In North America alone, private financing volume totaled $17.2 billion in 2017. Globally, the industry is expected to hit $300 billion by 2025, with over $34 billion raised to date.
With the integration of blockchain technology, private financing platforms are expected to change for the better and thus grow. Tabbaa further explains, “We believe that the digital economies and financial markets of the future will be built on digital assets, including tokenised equities and securities. Blockchain platforms will work as enablers, democratising investment securely, transparently and efficiently in regulated environments.”
Barghuthi sees ADGM as particularly well positioned to provide regulatory support for Jibrel’s private financing project: “With ADGM, we've found a forward-thinking, fast-moving regulator that provides the proper framework to facilitate the seamless transaction of equity tokens, furnishing equity with the efficiency and simplicity of Bitcoin and other related digital assets.”
Private financing presents a major growth opportunity in MENA. With the UAE and other Middle Eastern countries seeking to diversify their oil-based economies, young and tech-savvy entrepreneurs are starting new and successful businesses and are obtaining investor backing.