• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Fintech

Indonesia issues world's first blockchain sukuk

Indonesia issues world's first blockchain sukuk
  • Pedro Gonçalves
  • @PeterHSG
  • 22 October 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Indonesian Islamic microfinance cooperative BMT Bina Ummah has raised 710 million rupiah ($50,000) through the world's first primary sukuk issuance on a public blockchain and also the world's first micro sukuk.

Specialised news outlet The Asset reports that BMT Bina used the SmartSukuk platform of Blossom Finance. BMT Bina is an Islamic microfinance institution based in Yogyakarta that supports micro-SMEs and entrepreneurs who are typically excluded from conventional financing support.

Related articles

  • Surge in sukuk brings market back to 2006 levels
  • DIFC records 45% rise in Islamic assets
  • Focus on Frontier markets: sukuk issuance set to break records
  • Sukuk: An Asset Class Goes Mainstream

"The additional funds provided by this sukuk offers longer term stable funding and increases the overall amount of financing that we can offer our members," said BMT Bina general manager Arif Yuliyanto.

In much the same way, tokenized assets reduce intermediary costs, which makes global finance more accessible regardless of size or borders"

Islamic financial firms are incorporating social elements, such as environmentally-friendly and sustainable practices, to widen their appeal beyond religiously-minded customers in the Gulf and Southeast Asia.

Plans are to design Islamic bonds, or sukuk, linked to socially-conscious finance that could help mobilise large pools of assets across the Muslim world and increase the impact of Islamic finance.

Unlike traditional bonds that are debt instruments with an interest component, sukuks are tradeable instruments based on a profit sharing model, much like stocks.

Blossom Finance CEO Matthew Martin said the SmartSukuk platform removes the conventional barriers to social impact investing by making micro investments feasible, transparent and ultimately tradeable.

"Containerized freight reduced logistics costs which, in turn, brought global commerce within reach of virtually anyone across the globe. In much the same way, tokenized assets reduce intermediary costs, which makes global finance more accessible regardless of size or borders," he said.

Blossom Finance first introduced its Smart Sukuk platform in May last year to standardise and automate legal, accounting and payment aspects of the bonds. The platform utilizes ethereum smart contracts to "increase the efficiency and reach of sukuk issuance globally," the firm said at the time.

Blockchain and smart contracts are seeing increasing attention in the bonds markets. A World Bank trial in August raised $81m through its first blockchain-based bond.

 

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Fintech
  • Products
  • BMT Bina
  • Southeast Asia
  • Blossom Finance
  • Indonesia
  • sukuk
  • Islamic finance

More on Fintech

Israeli neobank raises $20m for expat cross-border services in Asia

  • Fintech
  • 05 March 2021
Biggest impact of blockchain will be security: research

  • Fintech
  • 03 March 2021
Switzerland's FlowBank launches global markets app

  • Fintech
  • 02 March 2021
Comment: Tesla, Bitcoin and the implications for the funds industry

  • Comment
  • 11 February 2021
Australia's Milestone Group launches Asia-Pacific institutional asset solution

  • Fintech
  • 02 February 2021
Back to Top

Most read

First digital only bank in UAE set to go live
First digital only bank in UAE set to go live
Standard Chartered names Singapore heavy hitter for global role
Standard Chartered names Singapore heavy hitter for global role
UK regulator bans financial adviser for dishonesty
UK regulator bans financial adviser for dishonesty
Bitcoin hits record high on cusp of Coinbase IPO
Bitcoin hits record high on cusp of Coinbase IPO
DeVere UK and Fidelius enter strategic partnership
DeVere UK and Fidelius enter strategic partnership
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading