UAE’s Al Hilal Bank announced that it had used distributed ledger technology (DLT) for a Sukuk transaction, Emirates News Agency reports. With this, the Islamic bank conducted the world’s first Sukuk transaction using blockchain. A Sukuk represents an Islamic bond, often referred to as a “Sharia-compliant” bond. This type of financial certificate is arranged in a way to generate returns without interfering with Islamic law, which prohibits interest. Al Hilal Bank leveraged blockchain to execute a secondary market deal for its $500 million senior Sukuk, with the maturity date in September 2023.
The move indirectly shows that the local government endorses the use of blockchain technology. Al Hilal Bank was founded by the Abu Dhabi Investment ...
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