#IslamicFinance
5 articles tagged #IslamicFinance — curated RWA tokenization coverage.
CIMB settles $342m tokenized sukuk using tokenized deposits in Malaysian first
CIMB Islamic Bank has successfully completed a pilot program involving the settlement of 342 million Malaysian Ringgit in tokenized sukuk using tokenized deposits. This transaction marks a significant milestone in Malaysia's digital asset landscape by integrating tokenized securities with tokenized cash on a distributed ledger. By pairing these two components, the bank aims to enhance operational efficiency, automate complex settlement processes, and significantly reduce the time required for transaction finality. This development represents a critical step toward the broader adoption of blockchain technology within the Islamic finance sector. The successful execution demonstrates the feasibility of end-to-end digital asset workflows, moving beyond simple issuance to full-cycle settlement. Such advancements are essential for the RWA market as they prove that tokenized money can effectively replace traditional fiat settlement layers. Ultimately, this pilot provides a scalable blueprint for future digital sukuk issuances and broader institutional adoption of DLT in the region.
Dukhan Bank Becomes Qatar’s First Islamic Bank to Go Live on Kinexys - Fana News -
Dukhan Bank has officially integrated with Kinexys by J.P. Morgan, becoming the first Islamic bank in Qatar to utilize the Blockchain Deposit Account network. This implementation enables the bank to provide corporate and institutional clients with 24/7 real-time cross-border payments, moving away from traditional settlement delays. By leveraging distributed ledger technology, the bank aims to enhance liquidity management and transparency for its global treasury operations. The move represents a significant milestone in the digital transformation of Islamic finance, aligning modern blockchain infrastructure with Sharia-compliant financial principles. Kinexys, J.P. Morgan’s blockchain unit, now supports eight of the largest banks in the Middle East through this network. This adoption underscores the broader trend of traditional financial institutions adopting programmable payment rails to improve efficiency and settlement speed. Ultimately, the integration highlights how blockchain-based infrastructure is becoming a standard requirement for banks seeking to remain competitive in the global treasury market.
Dukhan Bank becomes Qatar’s 1st Islamic bank to go live on Kinexys blockchain network | Gulf Times
Dukhan Bank has officially integrated with Kinexys by J.P. Morgan, becoming the first Islamic bank in Qatar to utilize the blockchain-based deposit account network. This implementation allows the bank to offer corporate and institutional clients 24/7 real-time cross-border payments, bypassing the limitations of traditional banking hours. By leveraging distributed ledger technology, the bank aims to enhance liquidity management and provide near-instant settlement for global treasury requirements. The move signifies a broader trend of Middle Eastern financial institutions adopting blockchain infrastructure to modernize payment rails while maintaining Sharia-compliant standards. Kinexys, J.P. Morgan’s dedicated blockchain unit, now supports eight of the region's largest banks, highlighting the rapid institutional adoption of tokenized deposit networks. This development is critical for the RWA market as it demonstrates how traditional banking assets and payment flows are being migrated onto programmable blockchain rails. Ultimately, the partnership underscores the growing synergy between Islamic finance principles and the efficiency of decentralized financial infrastructure.
Tether’s Gold-Backed Token XAUT Gains Shariah Compliance Certification
Tether has officially secured Shariah compliance certification for its gold-backed digital token, XAUT, from the advisory firm Amanah Advisors. This certification confirms that the token adheres to Islamic finance principles by prohibiting interest, excessive uncertainty, and speculation. Each XAUT token represents one fine troy ounce of physical gold stored in Swiss vaults, ensuring the asset remains tangible and compliant with religious standards. By meeting these requirements, XAUT is now positioned as a permissible investment for Muslim investors and institutions globally. This development is significant for the RWA market as it bridges the gap between blockchain-based digital assets and the $4 trillion Islamic finance industry. The move could accelerate the adoption of tokenized precious metals in key markets such as the UAE, Saudi Arabia, Malaysia, and Indonesia. Furthermore, this certification sets a precedent for other digital asset issuers looking to align their products with ethical and legal frameworks in diverse financial sectors.
Tokenised sukuk: the missing layer in emerging sovereign debt?
Geopolitical instability in the Middle East and Southeast Asia has created an urgent need for efficient sovereign capital mobilization to fund energy diversification and infrastructure reconstruction. Tokenised sukuk, which are Sharia-compliant certificates representing asset ownership, offer a promising mechanism to address these financing gaps by lowering entry barriers and automating lifecycle processes via smart contracts. While traditional sukuk markets have proven resilient during recent volatility, tokenisation provides a path to enhance liquidity and settlement efficiency through blockchain integration. Early initiatives like INABLR’s 'Sukuk-as-a-Service' on the Tezos blockchain and Abu Dhabi Islamic Bank’s Smart Sukuk platform demonstrate the viability of these digital instruments. Malaysia’s sovereign fund, Khazanah Nasional Berhad, has already piloted tokenised sukuk, signaling a shift toward digital sovereign debt. However, widespread adoption depends on overcoming regulatory fragmentation and establishing common standards for cross-border interoperability. Ultimately, tokenised sukuk represent a critical evolution in Islamic finance, potentially serving as a foundational layer for the future of sovereign debt markets.