Tokenized Sukuk: Mbank Prepares to Launch a First Digital Issuance Backed by a Stablecoin

Mbank is taking an advanced step in financial innovation as it prepares to launch a tokenized sukuk, considered a first-of-its-kind digital issuance.

The move reflects a broader strategy to digitize financial instruments and enhance capital market efficiency.

The bank’s chief executive stated that the initiative relies on developing a stablecoin known as AEC, set to become the first central bank–licensed stablecoin for digital payments and transfers.

A tokenized sukuk backed by a stablecoin is expected to accelerate settlement, reduce operational costs, and improve transparency.

The tokenized sukuk represents a new model that blends Islamic finance with blockchain technology, enabling broader investor access and easier distribution of digital financial products while maintaining regulatory and Sharia compliance.

Regulation-Driven Digital Shift

This development aligns with the UAE’s supportive regulatory environment, where authorities are establishing flexible legal frameworks that allow financial institutions to test innovative solutions and strengthen the country’s position as a global fintech hub.

Market Outlook

Analysts believe that instruments such as a tokenized sukuk could pave the way for new digital investment products, enhance liquidity efficiency, and reinforce investor confidence in blockchain-based and stablecoin-powered solutions.