Saudi Awwal Bank (SAB), in partnership with Oumla, has announced the launch of the world's first Islamic repo on blockchain.
What is an Islamic Repo on Blockchain?
An Islamic repo is a financial instrument that enables banks to borrow funds while adhering to Islamic finance principles. The use of blockchain makes this process faster and safer.
Benefits of the New Solution
According to Oumla, the innovation replaces paperwork with smart contracts, ensuring secure and immutable recording of all transactions. This facilitates asset and liquidity management for banks while reducing risks.
Blockchain Development in Saudi Arabia
Saudi Arabia is witnessing significant growth in blockchain and related technologies. Notably, the country saw a 51% increase in blockchain company registrations this year.
The launch of the first Islamic repo on blockchain is a significant step in the evolution of financial technologies in Saudi Arabia, highlighting the country's commitment to innovation.
