A Singapore-headquartered fintech company will be piloting a blockchain-based Islamic endowment project in Malaysia in the first quarter of 2019, IFN Fintech has learned.
To be known as Waqf Chain, the project involves the utilization of smart contracts to ease the process of setting up, authorizing and authenticating endowed properties.
“Finterra will develop a specific interface for this selected asset. These contributions will be made possible through Finterra or other means and will include the possibility for various purpose and interests depending on funders’ expectations. Specifically, contribution as charity, loans, investments or bonds all are intended to be integrated,” explained the company. “Each project will have its own attached digital token under the ERC-777 standard. This token will be placed into a project crowdfund smart contract that can only be started once the project has passed all due diligence requirements. After the crowdfund has been completed, any resulting project tokens are claimable by participants. These tokens are digital assets representative of a participant’s stake in that project.”
It is understood that Finterra has onboarded Bank Muamalat Malaysia for this project and is in discussions with several other Islamic banks. This initiative could prove significant as the utilization of blockchain technology to tokenize Waqf assets could solve the issue of the lack of transparency in the Waqf ecosystem.
Although based in Singapore, the company has a strong presence in Malaysia and is tapping the country’s sophisticated Islamic financial ecosystem to foray into the Shariah fintech space. In October, it signed a memorandum of agreement with Asia Pacific University of Technology and Innovation (APU) to set up the Gallactic Blockchain Center of Excellence.
“As part of this collaboration, APU is setting up computing resources on the campus together with Finterra, to provide access to the Finterra blockchain platform for its faculty and students to develop the skills required for building decentralized applications for the next generation of digital users,” noted the company.