KUALA LUMPUR, Malaysia, Oct. 9, 2025 /PRNewswire/ — In a landmark collaboration that bridges Islamic finance and emerging technology, Masverse Sdn. Bhd., in cooperation with Lembaga Zakat Selangor (LZS) and under the facilitation of Malaysia Digital Economy Corporation (MDEC), has completed the e-Wakalah Proof-of-Concept (POC). This blockchain-powered platform redefines transparency, efficiency, and accountability in Zakat fund distribution.
Representatives from Lembaga Zakat Selangor (LZS), Malaysia Digital Economy Corporation (MDEC), and Masverse Sdn. Bhd. during the e-Wakalah Blockchain Proof-of-Concept official kickoff session, marking a key milestone in advancing transparent and accountable Zakat fund distribution through blockchain innovation.
The initiative, officially commissioned through a Letter of Engagement dated 7 May 2024, followed a rigorous selection process where Masverse was shortlisted from several technology companies that submitted proposals to participate in this pioneering effort. All the firms were first briefed during an industry engagement session organised by the Malaysia Digital Economy Corporation (MDEC) in collaboration with Lembaga Zakat Selangor (LZS).
This selection marked the beginning of a historic milestone — one of Malaysia’s first blockchain-based pilots for Islamic social finance. The project was completed with full data sign-off by Lembaga Zakat Selangor in December 2024, confirming the POC’s validated outcomes and its demonstrated potential to transform the way Zakat is managed and distributed.
Transforming Faith-Based Giving through Technology
The e-Wakalah model digitises the traditional wakalah process, ensuring Zakat funds are distributed securely and verifiably via MasChain, Masverse’s public-permissioned blockchain. Through this innovation, each transaction is immutable, traceable, and auditable — allowing LZS to monitor every fund transfer from Wakalah (appointed representative) to Asnaf (eligible recipient) in real time.
During the POC, all the Asnaf successfully withdrew their Zakat funds directly to their bank accounts, with every transaction recorded on-chain. All the participating Wakalah reported positive feedback on the system’s usability and transparency, while Asnaf beneficiaries praised the digital process for its speed and convenience. The fastest withdrawal from onboarding to receipt of funds was completed in under seven minutes.
This milestone directly addresses long-standing issues, such as manual reporting, limited traceability, and potential fraud risks, replacing them with digital audit trails, automated validation, and data integrity at every stage.
A Global Benchmark for Islamic Fintech
The success of e-Wakalah is more than just a technological proof — it is a testament to possibility. It demonstrates that Islamic social finance can evolve through innovation without compromising its core principles of trust (amanah), justice (‘adl), and transparency (shafafiyyah). The e-Wakalah platform also introduces the concept of purpose-bound money (PBM), ensuring that every tokenised Zakat money issued is digitally programmed for its designated recipient and use case. This mechanism safeguards the sanctity of Zakat funds by preventing misuse, guaranteeing that allocations reach the right Asnaf categories in a fully verifiable manner.
Through blockchain technology, the distribution of Zakat now carries a digital signature of trust, ensuring that every ringgit reaches its rightful beneficiary. This model can be replicated globally across Waqf, Sadaqah, and other Islamic philanthropic systems.
“This initiative is a milestone in harmonising syariah-compliant finance with cutting-edge innovation,” said Mr Chew Kian Kok, Chief Executive Officer at Masverse. “With e-Wakalah, we’ve shown that technology can preserve the sanctity of Islamic giving while ensuring every transaction is transparent, accountable, and efficient.”
Towards a Scalable, Inclusive Future
Backed by MDEC’s Blockchain Pilot Programme, the e-Wakalah POC was developed and delivered between May and December 2024, encompassing prototype development, system testing, pilot distribution, and final data analysis.
The system integrates blockchain-based smart contracts, digital wallets, and e-KYC verification for Asnaf — providing a secure end-to-end process for fund management. Feedback from the pilot has also guided proposed enhancements, including automated withdrawals, integration with existing LZS systems, and simplified e-KYC flows for non-tech-savvy users.
A Call to the Islamic Digital Ecosystem
The success of e-Wakalah stands as a call to action for Islamic institutions, fintech vendors, and government bodies to collaborate in building transparent and equitable distribution systems powered by blockchain.
As Masverse continues to advance its MasChain infrastructure and expand e-Wakalah’s capabilities, the platform opens new pathways for global Islamic finance institutions seeking verifiable, scalable, and ethical digital transformation.
“This is Malaysia’s signal to the world,” added Mr Chew Kian Kok. “Islamic finance has always upheld the principles of accountability and trust — and through blockchain, we can now make these values visible. e-Wakalah is not just a project; it’s the beginning of a new era for digital trust and transparency in Islamic social finance.”
About Masverse
Masverse Sdn. Bhd. is a Malaysian blockchain solutions provider developing MasChain, a Layer-1 public-permissioned blockchain designed to power trust-based digital ecosystems. The company develops enterprise solutions for digital identity, supply chain management, ESG tracking, and Islamic finance, including its flagship BlockchainCert.my and e-Wakalah platforms.
About Lembaga Zakat Selangor (LZS)
LZS is the authorised zakat institution for the state of Selangor, Malaysia, responsible for collecting and distributing zakat funds to eligible Asnaf, ensuring equitable and transparent management aligned with Islamic principles.
