Malaysian sovereign wealth fund Khazanah Nasional is selling 100 million ringgit (US$25.31 million) of tokenised sukuk or Islamic bonds in the country’s first such offering.
The issuance is part of Khazanah’s medium-term Islamic notes programme of as much as 20 billion ringgit. Money raised from offerings through the scheme, known as Sukuk Danum Programme, can only be used for shariah-compliant activities and purposes.
The tokenised sukuk is a pilot initiative to test the use of blockchain technology or DLT in the domestic capital market, Securities Commission Malaysia (SC) says in a statement on April 28.
According to the regulator, the move is aimed at merging shariah-compliant assets with DLT to enhance accessibility, efficiency and transparency in the market, allowing relevant stakeholders around-the-clock access to information.
“Tokenisation offers the potential to improve transparency, broaden participation and support a more vibrant market. By working closely with market participants, we are building the regulatory and market foundation for the next phase of development in Malaysia’s capital market,” says Mohammad Faiz Azmi, chairman of the SC.
The offering represents an important step in building the capabilities, confidence and ecosystem required for a more digitally enabled future, and is “a practical step towards exploring how digital technology can improve how we issue and manage capital market instruments”, according to Amirul Feisal Wan Zahir, Khazanah’s managing director.
“This is not about introducing a new product for its own sake, but about building the foundations for a more efficient and transparent market over time,” he says.
