Fusang Exchange has listed the world’s first tokenized sukuk linked to a sovereign instrument, making an A-1 rated sukuk available to global institutions.
The exchange, located in Labuan, Malaysia, reported the digitisation of the sukuk issued by the International Islamic Liquidity Management Corporation (IILM), aiming to ease liquidity issues in Islamic finance. The digital sukuk, using Fusang’s proprietary technology, conforms to Shariah standards and offers legal transparency.
The ERC-20 tokens, advised by ZICO Shariah Advisory Services, represent a digital interest in the IILM sukuk and are managed by independent custodians. Fusang’s CEO, Henry Chong, highlighted the exchange’s fully regulated digital framework for trading, custody, and clearing of tokenized assets. The platform, supported by Malaysia’s initiative to advance Islamic financial markets, is only accessible to regulated financial institutions.
Labuan Financial Services Authority views this innovation as a step forward in Islamic finance within a regulated framework, aligning with Malaysia’s goal to become an Islamic finance hub, bolstered by tax exemptions in Budget 2024. Fusang’s President, Kelvin Ung, emphasized the platform’s role in addressing market access and providing digital investment opportunities in high-quality assets. Chong concluded by affirming the digital and inclusive future of Islamic finance.
Photo by Nick Fewings on Unsplash
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