A view of Al Maryah Island in Abu Dhabi. | Wikimedia Commons

Partnership Between ADI Foundation and Tokinvest Targets $100 Million in Tokenized Sukuk Issuance

NewsDesk
NewsDesk
Financial Arabia NewsDesk is the desk responsible for Financial Arabia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news...

The Emirates News Agency reported that ADI Foundation and Tokinvest have agreed to collaborate on the issuance of a $100 million tokenized Sukuk designed to improve liquidity and accessibility in Islamic finance. ADI Foundation contributes its institutional blockchain infrastructure developed under the Abu Dhabi Global Market framework while Tokinvest supplies its regulated marketplace licensed by the Dubai Virtual Assets Regulatory Authority. The initiative aligns with growing institutional interest in real world asset tokenization that has expanded market participation beyond traditional banking channels. A statement from the entities indicated the tokenized structure will enable fractional ownership and secondary trading of the Sukuk on compliant platforms.

A report from the Iranian Association of Islamic Finance placed global outstanding Sukuk volumes at $1.015 trillion at the end of 2025 after issuance climbed 28.2 percent year on year to $262.9 billion. Sovereign issuers accounted for $137.5 billion of that total while quasi sovereign and corporate segments recorded even stronger growth rates. The collaboration between ADI Foundation and Tokinvest on the $100 million tokenized Sukuk forms part of this expansion by applying distributed ledger technology to an instrument that has historically relied on conventional issuance methods. Binance Research data shows the broader tokenized real world assets market surged 589 percent from early 2025 to mid 2026 reaching between $32 billion and $37 billion.

Tokinvest operates a regulated platform for tokenized real world assets and completed a $3.2 million pre seed funding round in 2025 backed by Exponential Science Foundation and Triliv Holdings according to company disclosures. The firm secured VARA’s first multi asset issuance licence which enabled its initial tokenized offerings including a fully subscribed racehorse asset. ADI Foundation has pursued multiple institutional integrations in 2026 including partnerships that support equity tokenization and digital securities infrastructure under ADGM rules. These prior steps provide the foundation for the current Sukuk project that seeks to merge Islamic finance principles with on chain settlement capabilities.

The tokenized Sukuk is expected to target investors seeking compliant exposure to infrastructure or sustainable development projects with settlement occurring through regulated stablecoins or fiat rails. Industry assessments from PwC have highlighted tokenization’s potential to reduce issuance costs and settlement times for Sukuk by streamlining compliance and ownership transfers. ADI Foundation’s work on compliance embedded blockchain layers ensures the instrument meets regulatory standards across multiple jurisdictions in the Middle East and Africa. Tokinvest’s marketplace will facilitate distribution and secondary trading once the issuance receives necessary approvals.

Data from RWA.xyz indicated tokenized U.S. Treasuries alone accounted for roughly half of the $30.9 billion in on chain real world assets earlier in 2026 underscoring demand for yield bearing tokenized instruments. The ADI Foundation Tokinvest collaboration on the $100 million tokenized Sukuk extends this momentum into Islamic finance where Sukuk issuance has broadened beyond sovereign borrowers to include financial institutions and corporates. Both entities have signalled plans to scale similar offerings if the initial issuance demonstrates operational efficiency and investor uptake. Further details on the Sukuk’s underlying assets and timeline will be released following regulatory review.

Share This Article
Financial Arabia NewsDesk is the desk responsible for Financial Arabia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.