Al Hilal Bank looks to transform sukuk market with blockchain

Abu Dhabi-based Al Hilal Bank has tapped blockchain technology to complete what it claims to be the world’s first sukuk transaction.

The Islamic bank used it to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.

“We are aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.

A bank spokeswoman told Reuters that the size of the deal was $1 million, sold by Al Hilal to a private investor.