Indonesian company Blossom Finance plans to issue bonds on the blockchain the platform according to the norms of Islamic law — the Sharia.
Funds raised from the sale of such securities, the startup will use to Finance social projects, including waste disposal and construction of hospitals, according to CoinDesk. The bonds called Sukuks to be held in the coming months.
The initial amount of attracted investments will be small, the company said. However, this event will become a new stage of implementation of innovative technologies in the Muslim society.
The representative of the startup, strategy Director Khalid Howladar believes that technology is a distributed registry allows you to reduce costs in any business. He says:
The bonds Sukuks according to the norms of Sharia will be carried out using blockchain technology, the rate of return for investors is 10%.
Placement of securities will be made on the Ethereum platform that allows you to participate in the project to investors from any point of the globe.
The popularity of this method of raising funds is growing rapidly. For example, in August the world Bank was able to place the paper cost of $81 million on the platform, created using a distributed registry.
Austria’s government is in turn planning to sell government bonds on the Ethereum blockchain in the amount of 1.15 billion euros.