Al Hilal Bank, based in Abu Dhabi, United Arab Emirates (UAE), announced that it has completed "the first sukuk operation in the world" with the use of blockchain technology, according to Reuters on November 26th.
Sukuk, a legal instrument also known as "sharia compliant", allows investors to generate returns without violating Islamic law.
Reuters notes that Al Hilal Bank of Abu Dhabi used distributed ledger technology (DLP) to "sell and regulate a small portion of its $ 500 million five-year sukuk on the secondary market," adding:
"At Hilal Bank, it aims to transform the sukuk market through the adoption of blockchain and integration into their infrastructures, paving the way for innovative digitized Islamic sukuk".
According to a bank spokesperson, the deal was worth $ 1 million, sold by Al Hilal to a private investor. Reuters adds that the Swiss fintech company Jibrel Network, which has offices in Dubai, participated in the transaction.
Earlier this month, a Swiss startup, dubbed X8 AG, had received an Islamic financial certification from the Shariyah Review Bureau (SRB) for the stablecoin of the Ethereum-based company, as reported by Cointelegraph on 12 November.
Returning this summer, the Shariyah Review Bureau published a guide for Stellar, an open source platform for distributed payments, to implement its technology in Islamic financial institutions. Stellar claimed to be the first distributed accounting protocol to obtain sharia conformity certification, Cointelegraph wrote on July 18th.
Earlier this spring, an Indonesian fintech startup published a report titled "Is Bitcoin Halal or Haram: A Sharia Analysis", concluding that Bitcoin (BTC) is "generally admissible" under Sharia law, Cointelegraph reported on April 12th.