Abu Dhabi based bank, Al Hilal Bank has announced that it has successfully completed the world’s first sukuk transaction with the use of blockchain technology, according to the report of Reuters.
It was stated by Reuters that Al Hilal Bank was using the distributed ledger technology (DLT) in order to sell and settle in the secondary market a small portion of its $500 million five-year sukuk bonds.
Sukuk, is a legal instrument also known as “sharia-compliant” bonds. It allows investors to generate returns without infringing on Islamic law which prohibits several kinds of operations with money.
It is expected that Al Hilal Bank will transform the sukuk market by embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk bonds.
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