The Alternative Bank and TK Tech Africa have forged a partnership through their $500m Digital Sukuk initiative.
According to a statement from the bank on Wednesday, the partnership is pioneering the use of blockchain technology for the issuance, trading, and settlement of Sukuk bonds, championing ethical and Sharia-compliant investments in the country.
The Group Head of Structured Trade & Commodities Finance at The Alternative Bank, Gbenga Awe, emphasised the bank’s foremost position as a bank tech, leveraging its digital innovations and competencies in the financial services sector.
He stated that the bank wanted to create wealth by developing digital products for everyone interested in commodities and precious metals.
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According to Awe, the initiative will allow anyone to invest in the commodities market through tokenised alternative assets, providing unprecedented flexibility and accessibility.
“We are deeply engaged in the agricultural sector, with significant assets like cocoa, soybeans, sesame, precious metals, and warehousing facilities. Showcasing the bank’s preparedness to support the Sukuk initiative with tangible, real assets,” he elaborated.
Founder and CEO of TK Tech Africa, Oludamola Akindolire, noted, “We are setting a new benchmark for financial innovation in Africa, offering an ethical investment avenue through the synergy of Islamic finance and blockchain technology.”
The $500m Digital Sukuk initiative by The Alternative Bank and TK Tech Africa marks a significant stride towards integrating Islamic finance with blockchain technology in Nigeria.