Alternative Bank and TK Tech Africa have joined forces in a pioneering $500 million Digital Sukuk partnership.
The initiative heralds a new era of non-interest banking and financial technology, leveraging blockchain technology for the issuance, trading and settlement of Sukuk bonds.
By championing ethical and Sharia-compliant investments, the collaboration aims to reshape investment practices in the country.
Gbenga Awe, Group Head of Structured Trade & Commodities Finance at Alternative Bank, underscored the institution’s leading role as a bank-tech entity, harnessing digital innovations to drive progress in the financial services sector.
Awe stated the bank’s commitment to wealth creation through the development of digital products tailored to a wide range of investors interested in commodities and precious metals.
He explained the initiative’s democratizing effect which enables anyone to participate in the commodities market through tokenized alternative assets, thus enhancing accessibility and flexibility.
Also, Awe highlighted Alternative Bank’s substantial involvement in the agricultural sector, boasting significant assets in commodities such as cocoa, soybeans, sesame and precious metals, along with robust warehousing facilities.
Oludamola Akindolire, Founder and CEO of TK Tech Africa, hailed the collaboration as a transformative force in African financial innovation.
He cited the initiative’s role in setting a new standard for ethical investment, blending Islamic finance principles with cutting-edge blockchain technology.
He noted that the initiative targets urban middle- to high-income Nigerians aged 25 to 60, positioning itself as a catalyst for inclusive economic growth and fostering broader financial participation among diverse demographics.
