UAE-based Al Hilal Bank has made what it claims is the first sukuk transaction to be processed on the blockchain.
The transaction involved a secondary market deal in Al Hilal’s $500 million senior sukuk which matures in September 2013.
Al Hilal worked with a UAE-based fintech Jibrel Network and its own digital transformation team on the project.
According to Al Hilal chief executive Alex Coelho, integrating blockchain into sukuk infrastructure would be an important step in creating a digital sukuk market that could reduce both processing costs and operational risk.
“The advantages of using smart contracts range from safer transactions with robust Shariah compliance, to the unlocking of new opportunities,” said Coelho.
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