Al Hilal Bank uses blockchain for $500m sukuk transaction
Initiative the result of collaboration with Jibrel Network
Al Hilal Bank says it has executed a $500 million (Dh1.83 billion) senior sukuk transaction, maturing in September 2023, using blockchain technology.
“The advantages of using smart contracts range from safer transactions with robust Sharia compliance, to the unlocking of new opportunities,” Al Hilal CEO Alex Coelho said in a statement.
The initiative is the result of the collaboration of Al Hilal Bank’s Digital Transformation team with Jibrel Network, a UAE-based fintech.
“The partnership between Al Hilal Bank and UAE incubated start-up, Jibrel, highlights ADGM’s success in attracting, nurturing and fostering innovation,” Coelho said.
The collaboration was made possible thanks to the support of Abu Dhabi Global Markets’ (ADGM) fintech platforms that foster an interactive, collaborative and vibrant ecosystem for innovation to take root in Abu Dhabi and the region.
Sukuk has been one of the fastest growing asset classes with $97.9 billion worth of Islamic bonds issued in 2017, up 50 per cent from 2016.