Islamic Banking

This Blockchain Platform Wants To Serve Islamic Capital Markets

Blockchain Islamic Finance

Wethaq is a platform for Islamic capital markets using smart contracts and legal automation.

ArabianChain Technology, a UAE-based company focused on blockchain, has announced a joint venture with Curiositas to create Wethaq, a platform for Islamic capital markets using smart contracts and legal automation.

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Now, that might all sound like techno-babble, so the long and short of it is that this is the first blockchain platform designed specifically for Islamic money markets. It’ll digitise a lot of the processes involved in sukuks, which could have big ramifications for Middle Eastern stock markets such as the one in Dubai.

Wethaq is designed for financial institutions, fundraisers and investors to use in the pre-sale, issuance, management and secondary trading of sukuk products, according to a statement. Its first contract is expected to be issued in the first half of 2019.

“Our platform matters as there is an urgent need for automation and standardisation in Islamic capital markets,” said Dimitrios Vourakis, managing director of Curiositas.

“Financial institutions, fundraisers and investors incur substantial operational costs and third-party charges in Islamic capital markets and face more complexity and intermediaries than those encountered in conventional markets.

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“Wethaq separates the essential structuring services provided by financial institutions from additional services such as custodianship, and payments, and offers the latter on its automated platform.”

Customers will be able to use Wethaq’s platform for the entire lifecycle of their sukuk product.

“Due to its rigorous compliance and increased transparency, we expect both international investors and more conservative Islamic investors will consider investing in sukuk products through Wethaq,” said ArabianChain founder and CEO, Mohammed Alsehli.

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