• Friday, April 19, 2024
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BusinessDay

The Alternative Bank, TK Tech Africa unveil $500m digital Sukuk for financial innovation

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The Alternative Bank and TK Tech Africa have partnered to transform the landscape of financial technology and non-interest banking in Nigeria through their $500 million Digital Sukuk initiative.

The partnership is pioneering the use of blockchain technology for the issuance, trading, and settlement of Sukuk bonds, championing ethical and Sharia-compliant investments in the country.

Gbenga Awe, group head of structured trade and commodities finance at The Alternative Bank, emphasised its foremost position as a bank tech, leveraging its digital innovations and competencies in the financial services sector.

Awe underscored the bank’s efforts to create wealth by developing digital products for everyone interested in commodities and precious metals.

According to him, the initiative will allow anyone to invest in the commodities market through tokenized alternative assets, providing unprecedented flexibility and accessibility.

He affirmed that the bank’s involvement goes beyond just digital. “We are deeply engaged in the agricultural sector, with significant assets like cocoa, soybeans, sesame, precious metals, and warehousing facilities. Showcasing the bank’s preparedness to support the Sukuk initiative with tangible, real assets,” he elaborated.

Oludamola Akindolire, founder and CEO of TK Tech Africa, spoke on the transformative nature of this collaboration.

“We are setting a new benchmark for financial innovation in Africa, offering an ethical investment avenue through the synergy of Islamic finance and blockchain technology,” Akindolire stated.

He highlighted the initiative’s target demographic as urban middle- to high-income Nigerians aged 25 to 60, highlighting its role in fostering inclusive economic growth.

The initiative has received accolades from various industry leaders. Akinsola Akeredolu-Ale, managing director and CEO of Lagos Commodities and Futures Exchange (LCFE) commended The Alternative Bank for bringing significant assets to the table, underscoring the importance of engaging the youth in gold investment.

Eguarekhide Longe, managing director and CEO of the NASD OTC Securities Exchange expressed optimism about the initiative’s potential, stressing the importance of raising awareness for its success.