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Masverse Sdn. Bhd., in partnership with Lembaga Zakat Selangor (LZS) and supported by the Malaysia Digital Economy Corporation (MDEC), has completed the e-Wakalah Proof-of-Concept (POC), a blockchain-driven initiative designed to revolutionize the management and distribution of Zakat funds. The project, which represents a major milestone for Malaysia’s Islamic finance sector, introduces a new era of transparency, efficiency, and accountability through the integration of blockchain technology.
The e-Wakalah initiative, commissioned through a Letter of Engagement on May 7, 2024, emerged from a competitive selection process in which several technology firms presented proposals to collaborate on blockchain-based financial innovation. Following evaluation sessions organized by MDEC and LZS, Masverse was selected to lead the pilot project. By December 2024, LZS had completed a full data validation process, officially endorsing the POC’s successful outcomes and affirming its potential to redefine Islamic social finance in the country.
The e-Wakalah platform transforms the traditional wakalah model—a mechanism that authorizes representatives to manage charitable funds—into a fully digital and traceable system. Built on Masverse’s MasChain, a public-permissioned blockchain, the solution ensures that every Zakat transaction is immutable, auditable, and fully verifiable. This enables LZS to monitor fund transfers in real time, tracking the movement of donations from appointed representatives (wakalah) to qualified beneficiaries (asnaf).
During the proof-of-concept stage, all beneficiaries successfully received their Zakat funds directly into their bank accounts, with each transaction securely recorded on-chain. Participants in the pilot reported high levels of satisfaction, citing the platform’s transparency, ease of use, and speed. The fastest fund disbursement—from beneficiary onboarding to receipt—was completed in under seven minutes, showcasing the system’s operational efficiency.
The implementation of e-Wakalah addresses several longstanding issues in traditional Zakat management, including manual reporting, limited visibility, and vulnerability to fraud. By providing automated validation, digital audit trails, and data integrity mechanisms, the system strengthens public confidence in Zakat distribution and ensures compliance with Islamic principles.
Masverse designed the e-Wakalah system not only as a technological upgrade but also as a tool for reinforcing core Islamic values such as trust (amanah), justice (‘adl), and transparency (shafafiyyah). A key feature of the platform is its use of purpose-bound money (PBM), a mechanism that ensures each tokenized Zakat contribution is digitally programmed for its intended beneficiary and purpose. This approach prevents fund misallocation and guarantees that every transaction remains aligned with its designated charitable objective.
The blockchain infrastructure gives Zakat transactions a digital “signature of trust,” ensuring that every contribution reaches its rightful recipient with verifiable proof. The model is expected to serve as a blueprint for other Islamic philanthropic applications, including waqf (endowment) and sadaqah (voluntary charity) systems worldwide.
Developed under MDEC’s Blockchain Pilot Programme, the e-Wakalah project was executed between May and December 2024, encompassing system design, prototype development, live pilot distribution, and data analysis. The platform integrates blockchain-based smart contracts, digital wallets, and electronic know-your-customer (e-KYC) verification, enabling a secure, end-to-end digital process for fund management.
Feedback from the pilot program has guided proposed enhancements such as automated fund withdrawals, deeper integration with LZS’s existing digital systems, and simplified e-KYC processes to ensure accessibility for less tech-savvy users.
Masverse’s Chief Executive Officer, Chew Kian Kok, noted that the success of e-Wakalah demonstrated how blockchain could modernize Islamic finance while preserving its foundational values. He highlighted that the platform serves as a bridge between syariah-compliant finance and modern technology, proving that innovation can coexist with faith-based trust and accountability.
The e-Wakalah project stands as one of Malaysia’s earliest blockchain-based pilots in Islamic social finance, signaling the country’s readiness to lead in ethical digital transformation. It also calls on Islamic institutions, fintech providers, and regulatory bodies to collaborate in creating transparent, equitable, and tech-driven distribution systems.
As Masverse continues to enhance its MasChain infrastructure and scale the e-Wakalah platform, the initiative is expected to inspire broader adoption of blockchain in global Islamic finance. The company envisions a future where digital trust and transparency become the cornerstone of charitable giving,