Islamic Financial Institution partners with the Startup with intention of Developing the Interbank Blockchain Tools

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The developmental institution of Saudi Arabia – the Islamic Development Bank Group (IsDB) has entered into a partnership with a Tunisian startup, in order to develop interbank blockchain tools, according to the PR-article on Nov. 29.

IsDB, which will implement the project through its private sector subsidiary, the Islamic Corporation for the Development of Private Sector (ICD), is intended to improve Islamic financial institutions’ liquidity management and increase overall efficiency.

The organization signed the agreement with Tunisia-based iFinTech Solutions, a devoted outfit which portrays itself as an “Investment Advisory Firm focused on alternative financial solutions based on Islamic principles.”

The driving force behind utilizing blockchain for the activity lies in the relative detriment Islamic banks have on the overall stage, with organizations limited from subsidizing alternatives given by worldwide national banks, Reuters noted Dec. 3.

Ayman Sejiny, CEO of ICD, added in the press release:

“IT will always play an important role for the financial system. We will consistently pursue our strategy of service orientation and help our partners with innovative Sharia compliant FinTech solutions.”

Saudi Arabia has traditionally copied many other jurisdictions in maintaining a risk-averse official stance on cryptocurrencies while supporting blockchain.

In September, the country saw its first bank join blockchain consortium R3’s Corda platform, a month after regulators urged consumers not to trade cryptoassets.

Last week, an Abu Dhabi-based bank announced about the completion of the “first” transaction with blockchain.

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