Alternative bank and TK Tech Africa partner to launch a $500 million digital Sukuk initiative in Nigeria. This initiative aims to revolutionize Nigeria’s financial technology and non-interest banking sector by leveraging blockchain technology.
TK Tech Africa Partnership to Launch $500 Million Digital Sukuk Initiative
Sukuk, also known as Sharia-compliant bonds, will be issued, traded, and settled using blockchain technology, providing a secure and Sharia-compliant investment environment for customers in Nigeria.
Alternative Bank, licensed by the Central Bank of Nigeria, brings its expertise in Islamic banking, while TK Tech Africa, a blockchain technology company, provides the technological infrastructure for the initiative.
The partnership intends to offer clients the opportunity to participate in the commodities market through tokenized alternative assets, enhancing flexibility and accessibility for investors.
Both companies emphasize their commitment to meeting the evolving needs of customers while ensuring compliance with industry regulations.
Gbenga Awe Highlighted the Initiative’s Potential
Gbenga Awe, group head of structured trade and commodities finance at Alternative Bank, highlighted the initiative’s potential to enable Nigerians to invest in the commodities market.
He emphasized the bank’s significant assets in the agricultural sector, including cocoa, soybeans, sesame, and precious metals.
Oludamola Akindolire, founder and CEO of TK Tech Africa, praised the collaboration as a disruptive force in African financial innovation. He described the initiative as a fusion of Islamic finance principles and blockchain technology, setting a new standard for financial innovation in Africa.
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