Abu Dhabi Bank creates their first Blockchain transaction.

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Al Hilal Bank, located in Abu Dhabi, United Arab Emirates (UAE), announced that “the first Sukuk transaction worldwide was completed” with the use of blockchain network technology, reports Ritts on November 26.
“We are happy and very proud to be the first bank to launch a ‘Smart Blockchain Islamic Sukuk, once again, the bank has shown that it can lead in the competitive Islamic banking market,” said Al Hilal CEO Bank, Alex Coelho.
“The superiorities of using smart contracts range from the safest transactions with solid compliance of Shariah to the unlocking of new opportunities that will come.”
The Al Hilal Bank was founded by the Investment Council of Abu Dhabi, investment support from the government of Abu Dhabi. The bank provides personal, corporate, treasury, investment, and banking services to more than 100,000 customers. He also directs Al Hilal Global Balanced Fund, Global Sukuk Fund and GCC Equity Fund in Abu Dhabi itself.
Sukuk, defined by the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) as “securities of the same name that represent the interests of each property in a portfolio of existing or future eligible assets.”
Sukuk is considered a legal instrument that is also known as “Sharia-compliant” bonds, which allow all investors to generate profits without infringing Islamic law.
Ritts said Abu Dhabi’s Al Hilal bank would have used distributed general ledger (DLT) technology to “explicitly sell and negotiate a small part of its five-year, $500 million sukuk in the secondary market,” adding:
“Al Hilal Bank intends to be able to transform the Sukuk market by adopting the blockchain network and be able to integrate it into its infrastructure, thus seeking the path for the innovative digitized Islamic Sukuk.”
According to a bank spokeswoman, there was an agreement that was valued at $1 million, which had been sold by Al Hilal to a private investor. Ritts added that a Finnish technology company, Jibrel Network, which has offices located in Dubai, also participated in this transaction.
The Smart Blockchain Islamic Sukuk initiative is the result of all the collaboration that the Digital Transformation team of Al Hilal Bank has put in with the Jibrel Network of the United Arab Emirates.
Smart Sukuks will provide transactional efficiencies and significantly lower the high overhead costs that have been associated with the issuance and liquidation of Islamic Sukuks.
Companies believe that by leveraging these smart contracts to monitor compliance performance of the Shariah, operational efficiencies and automation sponsorships can be pledged.
“We firmly believe that by aligning Jibrel Network’s proven intelligent contract solutions with the world-class practice in the industry of Al Hilal Bank’s Digital Transformation Team, we will be able to provide Islamic financiers with the equipment necessary to prepare Islamic agreements. with the same rapidity, the volume and the effectiveness coursed in the current finances, and contentiously to develop new classes of digital forecasts that before were unprecedented. ”
Earlier this month, a Swiss company, which has a subsidiary name, X8 AG, had received an Islamic financial certification from the Shariyah Review Office (SRB) of Ethereum (stable coin), as Cointelegraph reported on the 12th. November.
This summer, the Shariyah Review Bureau published a review specifically for Stellar, a platform of codes open only for distributed payments, to implement its technology in Islamic financial institutions.
Cogelgraph wrote on July 18: “Stellar has claimed to be the first accounting protocol that has been distributed to obtain compliance certification concerning sharia.”
Previously, a Fintech Indonesian company had published a report entitled “Is the Halal Bitcoin or Haram: An Analysis of the Sharia?”, Thus concluding that the Bitcoin (BTC) is “generally allowed” in the state, according to the sharia law, Cointelegraph reported on April 12.
It is a significant change and progress that the United Arab Emirates has had in all their time. That this first transaction has occurred gives a step to success, that in the future more changes will continue to happen in this place.
It is a piece of news to celebrate, because it was his first time and that he was so successful.
“After that, we have been working hard to continue achieving more opportunities like this, ” said a worker from Abu Dhabi Bank
In August of this year, the World Bank and the Commonwealth Bank of Australia (CBA) issued the first blockchain bond worth more than $80 million, which was successfully made in the Ethereum network.

About Semantix 6 Articles
I was born in England in 1989 and studied at a local school until I graduated high school. I started working at a local store after not finding a particular career that I could feel exciting. After a year of reading and researching about politics and economics, I became interested in pursuing a career related to finances, which led me to save up a bit more and head over to the MIT, where I earned my bachelor's degree in economics. After that, I stayed for a while in the US, working as a financial advisor for a local food company. This job lasted for two years after which I decided to leave, looking for a better option that fit more what I enjoyed about finances. Before quitting that job, I had been studying the financial markets and stumbled upon Forex, si I immediately started investing in it. From then, I've been living off Forex trading and giving professional courses and workshops both in person and online. I've also worked as a freelance writer to help others learn more about the market. Recently, in 2017, I added Cryptocurrencies to my portfolio, and it has boosted both my income and range of knowledge.

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