First-of-its kind blockchain transaction executed by Islamic bank
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Al Hilal Bank executed the first sukuk transaction on a blockchain. A sukuk generates returns to investors without violating Islamic law prohibiting interest. The inaugural transaction was a secondary market deal for a $500 million senior sukuk maturing in September 2023. Al Hilal Bank's CEO, Alex Coelho said, "The advantages of using smart contracts range from safer transactions with robust Shariah compliance, to the unlocking of new opportunities." Sukuks are a fast-growing asset class, with $9.7 billion issued worldwide in 2017, up a whopping 50% from the prior year. (Source: Al Hilal Bank)
