A collaboration has been established between The Alternative Bank and TK Tech Africa for their $500m Digital Sukuk project.
In a statement released by the bank on Wednesday, it was revealed that the partnership is leading the way in utilizing blockchain technology for the issuance, trading, and settlement of Sukuk bonds, promoting ethical and Sharia-compliant investments within the nation.
Gbenga Awe, the Group Head of Structured Trade & Commodities Finance at The Alternative Bank, highlighted the bank’s position as a frontrunner in banking technology, leveraging its digital advancements and expertise in the financial services industry.
He expressed the bank’s goal of generating wealth by creating digital products for individuals interested in commodities and precious metals.
Awe explained that the initiative will enable anyone to participate in the commodities market through tokenized alternative assets, offering unparalleled flexibility and accessibility.
“Our focus is heavily on the agricultural sector, holding significant assets such as cocoa, soybeans, sesame, precious metals, and warehousing facilities. This demonstrates the bank’s readiness to back the Sukuk initiative with substantial, tangible assets,” he added.
The Founder and CEO of TK Tech Africa, Oludamola Akindolire, remarked, “We are establishing a new standard for financial innovation in Africa by providing an ethical investment platform through the synergy of Islamic finance and blockchain technology.”
The collaboration on the $500m Digital Sukuk project by The Alternative Bank and TK Tech Africa represents a significant advancement in integrating Islamic finance with blockchain technology in Nigeria.