UAE-based fintech startup Wafr has launched WafrChain, a blockchain platform designed to digitize the issuance, distribution, and settlement of Islamic financial instruments, as the company seeks to modernize financial services through blockchain technology. The launch follows an undisclosed pre-seed funding round backed by investors with experience in digital banking, financial technology, and institutional innovation.
WafrChain is designed to streamline the processes associated with Islamic sukuk, which are Shariah-compliant financial certificates commonly used to raise capital. The platform provides shared digital infrastructure connecting financial institutions, sukuk issuers and investors, with the objective of reducing operational complexity and improving transaction efficiency across Islamic capital markets.
The company has not disclosed the amount raised in its latest funding round or its valuation. However, the participation of established financial technology executives highlights investor interest in infrastructure solutions targeting Islamic finance and the broader digital asset industry.
Experienced Fintech Investors Back Wafr
The pre-seed funding round included investments from Coen Jonker, co-founder of digital banking group Tyme Group, and Neal Cross, co-founder of PictureWealth and former chief innovation officer at DBS Bank.
Their participation provides Wafr with access to experience spanning digital banking, financial services innovation and technology-driven financial infrastructure. The company plans to use its platform to address operational challenges in Islamic financial markets, where traditional issuance and settlement procedures can involve multiple intermediaries and extensive documentation.
Founded in 2026 by Mahmoud Bouchelif and Anthony Murphy, Wafr is developing blockchain-based solutions intended to simplify access to Islamic financial services. Its initial focus is on sukuk, a significant segment of Islamic finance that requires financial arrangements to comply with Shariah principles.
Smart Contracts Automate Sukuk Operations
WafrChain uses blockchain infrastructure to maintain digital records of sukuk details and associated Shariah approvals. Smart contracts are designed to facilitate profit distributions, potentially reducing the administrative workload involved in managing financial instruments throughout their lifecycle.
The platform aims to bring issuers, financial institutions, and investors onto a shared blockchain infrastructure, using smart contracts to automate profit payments and improve the efficiency of sukuk issuance and settlement.
The system also supports settlement through conventional banking infrastructure and stablecoins, giving participating institutions flexibility in how they process transactions. Financial institutions can connect to the platform through an application programming interface (API), allowing integration with existing financial systems without requiring them to replace their entire technology infrastructure.
Wafr reports transaction confirmation times of approximately 300 milliseconds. The platform also employs a permissioned blockchain architecture that restricts access to sensitive financial information. This structure is intended to address institutional requirements concerning privacy, controlled participation and the management of financial records.
Blockchain Platform Targets Traditional Sukuk Inefficiencies
Traditional sukuk issuance can involve several intermediaries, creating operational challenges for issuers and investors. According to Wafr, conventional issuance processes may require coordination among eight separate parties and take several months to complete.
WafrChain is intended to simplify these arrangements by digitizing important stages of the process and connecting participants through shared infrastructure. Recording issuance information and Shariah approvals on the platform could also improve access to transaction records and streamline administrative coordination.
However, the company has not released independently verified figures demonstrating reductions in issuance costs or processing times. The platform’s actual impact will therefore depend on institutional adoption, regulatory acceptance, and its ability to integrate with existing financial market infrastructure.
Wafr Plans Expansion Into Tokenized Financial Services
Following the WafrChain launch, the startup intends to expand its technology into additional financial applications. Its planned areas of development include fund tokenization, digital deposits, trade finance and business-to-business settlement.
Longer-term ambitions include introducing international accounts, cross-border remittances and payment cards. These services would extend the company’s focus beyond sukuk infrastructure into broader digital banking and payment services.
By combining permissioned blockchain technology, conventional banking connectivity and stablecoin settlement, Wafr aims to develop financial infrastructure that can serve Islamic finance institutions while supporting a wider range of digital financial services.
The expansion plans remain subject to regulatory approvals and the company’s ability to establish partnerships with financial institutions. Its immediate priority will be demonstrating that WafrChain can simplify sukuk operations while meeting the security, compliance, and operational requirements of institutional participants.
The launch places Wafr among fintech startups exploring how blockchain technology can modernize established financial products, particularly in markets where specialized regulatory and religious compliance requirements influence financial operations.
