UAE based financial institution Al Hilal Bank has become the first Islamic bank to execute a transaction on the blockchain. As reported by Reuters, the state-owned bank executed an Islamic bond known as Sukuk on the blockchain. The transaction was facilitated on the secondary market, and the distributed ledger technology was used to sell and settle a certain percentage of its $500 million five-year Sukuk. The Sukuk was issued in September 2018, and are scheduled to mature in September 2023.
The bank partnered with Jibrel Network, a UAE-based Fintech who leveraged on the Plug and Play ADGM innovation platform, designed to accelerate the adoption of blockchain for the Islamic Finance Sector.