Blockchain

Al Hilal Bank places $500 million Bond on Blockchain

CryptoChats-al hilal

Released in a report on 11/26/2018, Abu Dhabi based bank, Al Hilal, successfully placed a $500 million Islamic bond on the blockchain.

The bond which is set to mature in 2023, is a shariah-compliant bond, or sukuk, worth $500 million on the secondary market. The bond was placed by Al Hilal which acts as an investment arm of the local government. The bond is the first on its kind to be placed on the blockchain.

“We are proud to be the first bank to launch a ‘Smart Blockchain Islamic Sukuk’. The advantages of using smart contracts range from safer transactions with robust Shariah compliance, to the unlocking of new opportunities.”

UAE-based fintech startup, Jibrel Network, assisted the bank with the technical aspect of placing the bond on the blockchain. The bond is equipped with an infrastructure to facilitate the transactions as well as an arsenal of other blockchain tools.

Al Hilal bank hopes to continue to pioneer in the area of sukuk’s as they were declared on the the fastest growing asset industries back in 2017. From 2016 to 2017 there was a 50% increase in the number of sukuk bonds issued.

Indonesian financial firm Blossom Finance is in close pursuit of the Al Hilal bank as rumors sprang up last month of their interest of placing a sukuk bond on the blockchain.

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