Shariah-Compliant Tokenisation Finds Its Structure

Islamic finance has an unexpected affinity with tokenisation. Sukuk represent undivided ownership in an underlying asset rather than a debt claim, which maps onto a token far more naturally than a conventional bond.

Several issuers have now brought Shariah-compliant tokenised instruments to market, with scholarly approval secured on the basis that the token evidences ownership rather than creating interest-bearing debt.

For Pakistan, where Islamic banking holds a substantial and growing share of assets, this is the more likely route to mainstream tokenised issuance.