IslamicFinance.de

According to Matthew Martin, founder of microfinance investment fund Blossom Finance, technology will make sukuk issuance much cheaper and simpler as well as more available to investors and issuers. The potential for blockchain to transform the bond and sukuk space was noted by S&P Global Ratings last October. The rating agency wrote that blockchain and smart contract protocols could increase the transparency of cash flows and underlying assets. The World Bank created the first public bond to be managed using blockchain last August. According to Reuters, the prototype deal was as a step towards moving bond sales away from manual processes. Blossom will also use blockchain to record all transactions on the ledger. Currently, the company is selectively listing investors who want to be part of the pilot.