Bank in partnership with TK Tech on $500 million digital Sukuk

The Alternative Bank and TK Tech Africa have disclosed collaboration to transform the landscape of financial technology and non-interest banking with their innovative $500 million digital Sukuk initiative.

This partnership aimed to use 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 and Commodities Finance at The Alternative Bank, Gbenga Awe, explain the bank’s foremost position as a bank tech, leveraging its digital innovations and competencies in the financial services sector.

Awe further expressed the bank’s efforts to create wealth by developing digital products for everyone interested in commodities and precious metals. He noted that the initiative will allow anyone to invest in the commodities market through tokenised alternative assets, providing unprecedented flexibility and accessibility.

He said, “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."

Similarly, the Founder and CEO of TK Tech Africa, Oludamola Akindolire, spoke on the transformative nature of the collaboration, said: “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.”