Wafr has launched WafrChain, a blockchain platform for Shariah-compliant sukuk.
The platform is the company’s first product, and sukuk tokenisation is now live.
The launch follows a pre-seed round. Its backers include Coen Jonker, who co-founded Tyme Group, and Neal Cross, formerly of DBS Bank.
Wafr says a single sukuk issue often involves eight parties. Each one keeps its own record, so every transfer and profit payment is re-keyed and reconciled. This adds cost and delay, and raises the risk of error.
WafrChain gives these parties one shared record on a private, permissioned blockchain.
Before the sukuk is sold, the platform stores its terms with the issuer’s Shariah board approval. Smart contracts then route the profit payments.
Settlement can happen in fiat currency via SWIFT and local real-time gross settlement systems, or in stablecoins.
The company says each transaction is final within 300 milliseconds. Participants see only their own activity, which keeps positions private.
“WafrChain is our starting point, giving institutions a foundation for bringing Shariah-compliant assets on-chain while we develop the services people need to manage their financial lives across borders,”
said Mahmoud Bouchelif, Co-Founder and CEO at Wafr.
“Wafr is one of the few teams starting with the customers who need it most. Islamic finance was built on trust, transparency and shared risk, which is exactly what blockchain does best,”
said Neal Cross, former Chief Innovation Officer at DBS Bank.
Wafr also plans to tokenise funds and deposits and to offer trade finance. Accounts, remittances and cards for consumers are planned too, subject to regulatory approval.
Featured image: Edited by Fintech News UAE, based on image by GoTyme via its website, Fintech News Singapore via its website and jalanajaudah via Magnific.
