On November 17, Dubai-based blockchain fintech Wethaq issued its first pilot Sukuk on its securities market platform for Islamic capital markets. The Dubai Financial Services Authority (DFSA) supervised the issuance of the Sukuk. The company did not disclose the amount raised in the deal.
A Sukuk is a type of Islamic financial instrument which is interest-free and represents the ownership of an underlying asset, service or investment. A Sukuk is based on asset financing, compared to a conventional bond based on debt financing. Just like traditional bonds, there are several parties involved in the issuance of Sukuk.
Wethaq’s solution is built on R3’s Corda blockchain. Ledger Insights previously
explored the partnership between R3 and Wethaq for blockchain Islamic finance. The platform integrates SWIFT’s payment and settlement functionality allowing investors to use traditional methods to invest in blockchain Sukuks.
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