Islamic Bank Completed the First Sukuk Transaction on Blockchain

Islamic Bank Completed the First Sukuk Transaction on Blockchain

Al Hilal Bank reported it had sold assets worth 1 million USD using distributed ledger technology

On November 26, 2018 Reuters international news agency informed that Al Hilal Bank had reported about completion of the first sukuk transaction with the use of distributed ledger technology technology. Al Hilal Bank is located in Abu Dhabi (the United Arab Emirates).

Sukuk is the Arabic name for financial certificates, also commonly referred to as "sharia compliant" bonds. Sukuk were developed as an alternative to conventional bonds which are not considered permissible by many Muslims as they pay interest. Using sukuk, investors can get returns without violating Islamic law.

According to Reuters, “Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk.”

Up to date, Abu Dhabi Bank has successfully applied the distributed ledger technology “to sell and settle in the secondary market a small portion of its 500 million USD five-year sukuk.” As a bank spokeswoman reported, the volume of the deal was 1 million USD, and those assets were sold to a private investor.

It has also transpired that Jibrel Network, a Switzerland-based fintech company with offices in Dubai, was involved in the transaction.

Sources:

https://cointelegraph.com/news/abu-dhabi-bank-reports-first-blockchain-based-transaction-of-sharia-compliant-bonds

https://www.reuters.com/article/us-space-mars/nasas-insight-lands-on-mars-to-peer-into-planets-deep-interior-idUSKCN1NV160?rpc=401&

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