Abu Dhabi-based Al Hilal Bank announced on Monday that it completed the world’s first sukuk transaction using blockchain technology. Sukuk, also known as  “sharia compliant” bonds, is a legal instrument which allows investors to generate returns without infringing on Islamic law.

Reuters notes that the Al Hilal Bank used the distributed ledger technology (DLT) to “to sell and settle in the secondary market a small portion of its $500 million five-year sukuk.” Adding, “Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk.”

According to a spokeswoman for the bank, the deal was worth $1 million, sold by Al Hilal to a private investor. Reuters adds that the Swiss-based fintech company Jibrel Network, which has offices in Dubai, participated in the transaction.

Cointelegraph reported earlier this month that a Swiss startup, dubbed X8 AG, received an Islamic financial certification from the Shariyah Review Bureau (SRB) for the company’s Ethereum-based stablecoin. This most recent summer, the Shariyah Review Bureau released guidance for Stellar, an open-source platform for distributed payments, to establish their technology in Islamic financial institutions. Cointelegraph also mentioned back on July 18 that Stellar claimed to be the “first distributed ledger protocol to obtain sharia compliance certification.”

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