Dubai-based Islamic fintech company Wafr has launched WafrChain, a private permissioned blockchain platform designed to simplify the issuance, distribution and settlement of Shariah-compliant sukuk.
The company also announced a pre-seed funding round backed by Coen Jonker, co-founder of Tyme Group, and Neal Cross, former chief innovation officer of DBS Bank. The investment amount was not disclosed.
The launch comes as the global Islamic finance industry continues to expand, creating opportunities for blockchain technology to improve efficiency, transparency and settlement processes in sukuk markets.
WafrChain aims to simplify sukuk issuance
WafrChain is designed to bring multiple stages of the sukuk lifecycle onto a single blockchain-based system, reducing the need for reconciliation between institutions.
Traditional sukuk issuance can involve as many as eight separate institutions, creating administrative complexity and delays. Wafr’s platform aims to address these challenges by maintaining a shared digital record of transactions and approvals.
The system records instrument terms and Shariah board approvals on-chain before securities are distributed to investors. Smart contracts then automate profit payments, helping streamline processes that traditionally require coordination between multiple parties.
The platform supports fiat currency settlements through real-time gross settlement systems and SWIFT, alongside stablecoin-based transactions.
Financial institutions can connect to the infrastructure through a single application programming interface (API), while the permissioned blockchain restricts participants’ access to their own transaction activity.
According to Wafr, transactions can achieve finality within 300 milliseconds.
Industry veterans back Wafr’s expansion
Wafr’s early investors bring experience in digital banking, financial technology and institutional innovation.
Coen Jonker, co-founder of Tyme Group, previously served as a group executive at Commonwealth Bank of Australia. Neal Cross, a former chief innovation officer at DBS Bank, also co-founded financial technology company PictureWealth.
The company is led by chief executive officer Mahmoud Bouchelif, a former Islamic banker, alongside chief product officer Anthony Murphy.
Murphy has experience launching digital banking services at major financial institutions, including AMP, Commonwealth Bank of Australia and Macquarie Bank.
Their combined backgrounds in Islamic finance, banking technology and digital financial services are expected to support Wafr’s efforts to introduce blockchain infrastructure to institutional markets.
Islamic finance assets reach $6.5 trillion
The launch follows continued growth in the global Islamic finance industry.
According to the ICD–LSEG Islamic Finance Development Report 2026, global Islamic finance assets reached $6.5 trillion in 2025, representing a 9% increase compared with the previous year.
Outstanding sukuk reached $1.14 trillion, while annual sukuk issuance increased by 14.5% to $291.4 billion.
Despite this expansion, traditional issuance processes remain complex, with transactions sometimes taking several months to reach the market because of documentation requirements and reconciliation between participating institutions.
Wafr aims to reduce these inefficiencies through blockchain-based recordkeeping, automated payments and integrated settlement infrastructure.
Wafr plans expansion into tokenised financial services
WafrChain has launched with sukuk tokenisation capabilities, but the company plans to extend the platform into additional areas of Islamic and digital finance.
Its development roadmap includes fund tokenisation, tokenised deposits, trade finance and business-to-business settlement solutions.
Wafr also plans to introduce consumer-facing financial services, including global accounts, cross-border remittances and payment cards.
These services would expand the company’s activities beyond institutional sukuk infrastructure into broader digital banking and payment solutions.
Tokenised sukuk market gains momentum
Wafr’s launch comes amid growing interest in tokenised Islamic financial instruments across international markets.
In April, Malaysia’s sovereign wealth fund Khazanah issued a $23.9 million tokenised sukuk pilot, demonstrating the potential application of blockchain technology in Islamic capital markets.
In August, CIMB tested tokenised settlement involving approximately $330 million of a $401.7 million sukuk issuance.
These developments indicate increasing experimentation with blockchain-based issuance and settlement systems as financial institutions explore ways to modernise Islamic capital markets.
However, wider adoption will depend on regulatory approvals, Shariah governance standards, institutional participation and compatibility with existing financial infrastructure.
Liquidity and investor readiness also remain important considerations for the emerging tokenised sukuk market.
For Wafr, the next challenge will be converting its technology into commercial adoption among sukuk issuers, distributors and other institutional participants.
The company’s ability to integrate with established settlement networks and meet regulatory requirements will play a significant role in determining whether WafrChain can support broader adoption of tokenised Islamic financial products.
