Abu Dhabi Bank Settles $500 Million Bond on a Blockchain

Abu Dhabi-based Al Hilal Bank has carried out a blockchain-based transaction for an Islamic bond worth $500 million.

AccessTimeIconNov 27, 2018 at 9:00 a.m. UTC
Updated Sep 13, 2021 at 8:37 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Abu Dhabi-headquartered Al Hilal Bank has carried a blockchain-based transaction for an Islamic bond worth $500 million.

The bank, an investment arm of the Abu Dhabi government, announced Monday that it settled the Islamic, shariah-compliant bond, or sukuk, worth $500 million on the secondary market, using blockchain tech. The bond is maturing in September 2023.

On the tech side, Jibrel Network, a UAE-based fintech startup, assisted the bank with necessary blockchain tools and infrastructure to facilitate the transaction.

The bank said it is aiming to transform the sukuk market using blockchain and integrating the tech into its infrastructure to issue more digitized or "smart" sukuks for more efficient transactions and reduced overhead costs.

Al Hilal Bank’s CEO, Alex Coelho, said:

“We are proud to be the first bank to launch a 'Smart Blockchain Islamic Sukuk'. The advantages of using smart contracts range from safer transactions with robust Shariah compliance, to the unlocking of new opportunities.”

The bank further said that Islamic sukuks are one of the fastest growing asset classes, with $97.9 billion worth of the bonds being issued in 2017 – a 50 percent increase from 2016.

Last month, Indonesian financial firm Blossom Finance was also looking to issue Sharia-compliant bonds or sukuks on the blockchain to fund social projects.

The World Bank raised $81 million through its first blockchain-based bond in the summer.

image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.