#Sukuk
3 articles tagged #Sukuk — curated RWA tokenization coverage.
Pakistan looks to Hong Kong model for tokenized bonds, digital finance
Pakistan is actively exploring the tokenization of government securities and sukuk by leveraging insights from Hong Kong’s established digital bond market. Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), held high-level meetings with the Hong Kong Monetary Authority to discuss integrating blockchain technology into national financial infrastructure. This initiative follows Pakistan's recent establishment of a formal regulatory framework for virtual assets, aimed at bringing the country's previously informal crypto market into a transparent, institutionalized ecosystem. By studying Hong Kong’s successful experiments with tokenized government bonds, Islamabad seeks to modernize its settlement infrastructure and attract global investment. The collaboration focuses on developing practical applications for tokenized capital markets and regulatory technology to bridge Pakistani tech firms with international capital. This move signals a strategic shift toward digitizing sovereign debt to enhance market efficiency and liquidity. Ultimately, the effort underscores a growing trend among emerging economies to adopt distributed-ledger technology for mainstream financial instruments.
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.
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.