Abu Dhabi’s Al Hilal Bank Uses Blockchain For Islamic Bond Settlement

- Advertisement -

November 26, 2018 10:14 PM

Al Hilal Bank says it has conducted the first “sukuk” transaction using blockchain technology.

The Al Hilal Bank has used a blockchain to sell and settle part of its $500 billion five-year sukuk issued in September 2018. The transaction amounted to $1 million and the sukuk was sold to a private investor, a spokesperson confirmed to Reuters

Sukuks are Sharia-compliant Islamic bonds, or financial certificates, that allow investment in Islamic countries without breaking religious laws. They are similar to government-issued bonds, investment in which is not permitted in Islamic law because bonds yield interest.

The Abu Dhabi bank’s CEO, Alex Coelho, said it was the first bank to offer a “Smart Blockchain Islamic Sukuk,” adding that smart contracts would make transactions safer.

The bank’s digital transformation team partnered with UAE-based FinTech company Jibrel Network and was supported by Abu Dhabi Global Market’s (ADGM) FinTech Regulatory Lab.

- Advertisement -

As with other investment product settlement trials, like one recently conducted in Singapore, blockchains are being tested and used in the hopes that they reduce administrative overheads and improve record-keeping and efficiencies for financial transactions. Al Hilal bank is another example of the global permeation of blockchain technologies, even in such products as the sukuk, which must also be compliant with Islamic law.  

Melanie Kramer is a freelance FinTech, blockchain, and cryptocurrency writer based between France and Canada. Melanie has studied, and retains an avid interest in, global politics, business, and economics.

Like what you read? Follow us on X @Bitnewsbot to receive the latest Abu Dhabi, Al Hilal Bank or other Ethereum business and finance news.

- Advertisement -



Previous Articles:

- Advertisement -

Latest News

AI-Powered Blockchain Activity Soars 86%, Nears Gaming Market Share

Blockchain-based Artificial Intelligence activity has grown by 86% since the beginning of 2025, according...

Maine Attorney General Recovers Thousands in Crypto Scam Case

The Maine Attorney General's Office has recovered thousands of dollars for a victim of...

Coinbase Shares Hit Highest Level Since 2021 Nasdaq Debut

Coinbase stock reached its highest price since its 2021 listing, nearly returning to debut...

BPX Gains FCA Nod to Trade Tokenized Securities in the UK

BPX, a startup focused on trading tokenized securities, received several authorizations from the UK’s...

Shopify, Coinbase Launch USDC Payments; Mastercard Expands Crypto Access

Shopify and Coinbase allow merchants to accept USDC stablecoin payments, making crypto transactions easier...

Must Read

5 Best Crypto Jobs Sites To Land Your Next Six Figure Job

The cryptocurrency and blockchain job market has exploded. With new blockchain start-ups and projects being founded at a blistering pace, the demand for workers...