The Muslim financial world has been abuzz ever since Bitcoin and blockchain tech entered the scene. And there have been numerous articles floating around explaining and arguing the distant relationship between cryptos and the Muslim population.
According to reports, The Al Hilal Bank has announced that it has completed “the world’s first sukuk transaction” with the use of blockchain technology.
What is Sukuk?
Sukuk is a legal instrument, which is also referred to as “sharia-compliant” bonds. And these bonds allow the investors of the Muslim faith to generate returns without breaching the Islamic laws.The report further explained that the bank leveraged the distributed ledger technology (DLT), to sell and settle a small portion of its $500 million, five-year sukuk, in the secondary market.
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.
The Al Hilal bank sold the deal to a private investor and according to a spokeswoman of the bank it was worth a whooping $ 1 million. Furthermore, it was revealed that Jibrel Network, which is a Swiss-based fintech company and has offices in Dubai, also participated in the transaction.
Only recently, a Swiss fintech firm, X8 AG was certified as halal by Islamic scholars for its digital currency. And now, an Abu Dhabi-based bank has officially carried out its first blockchain powered transaction.
Moreover, back in summer the Shariyah Review Bureau, announced guidance particularly for Stellar, which is an open-source platform facilitating distributed payments, to deploy their technology in Islamic financial institutions. Stellar also claims to be the first distributed ledger protocol to obtain sharia compliance certification.
With the way things are going, Muslims around the world might be seeing a whole lot of crypto and blockchain soon.
For further updates, stay tuned to BlockPublisher.