MAAL BLOCKCHAIN IN ISLAMIC FINANCE

Maal Blockchain is geared to revolutionize Islamic Finance

ADDRESSING THE DIGITAL REVOLUTION THAT IS HAPPENING RIGHT NOW WILL FOSTER COMPETITIVE ADVANTAGE FOR THE ISLAMIC FINANCE INDUSTRY

Islamic financial institutions can utilize Maal Blockchain technology and smart contracts for complex financing terms, Shariah-compliant transactions and Islamic and sharia-compliant alternatives to conventional insurance. Maal Blockchain with it's Concept of Identity can assist in KYC, back-office automation, and underwriting of micro-insurance.

Islamic Finance Use Cases

Islamic Banking

Maal Blockchain offers an ideal solution for Islamic bankers because it reduces costs involved in transactions and processes. Although this is something all banks must deal with, the issue is particularly acute for Islamic financial institutions. Enter smart contracts. Using Maal blockchain technology, smart contracts are capable of essentially automating the whole contractual process for Islamic institutions, including enforcing the terms of the contract.

Smart Sukuk

Sukuk in general plays a significant role in the Islamic capital market, and their market share is expanding quickly all over the world. Adopting Maal blockchain technology for Sukuk issuance saves costs, increases transparency, and improves effectiveness. An institution looking to raise funds can issue Smart Sukuk, which collects funds from investors in exchange for Smart Sukuk Tokens representing an ownership portion of the sukuk. When the institution makes payments, the funds are automatically distributed back to the Smart Sukuk Token holders via Maal blockchain according to the rules of the smart contract - without the need of intermediaries.

Digital Takaful

It is possible to implement smart contracts in Takaful as a way to manage the payments made by Takaful subscribers. As a result, it would also be possible to build a single decentralized database capable of detecting fraud due to repeated claims. Immediately after the transaction is created, all the information will be shared with the rest of the network. The most important strength of the Maal Blockchain technology is the accessibility of information in real-time and in a distributed manner. It is the result of this that there can be an increase in transparency in the takaful field as established by Gharar. Moreover, insurance managers could implement Maal Blockchain also in order to reduce fraud by sharing and verifying distributed records.