Masverse and Lembaga Zakat Selangor Pioneer Blockchain-Based Zakat Distribution through e-Wakalah Proof-of-Concept

KUALA LUMPUR, Malaysia,Oct. 9, 2025/PRNewswire/ -- In a landmark collaboration that bridges Islamic finance and emerging technology,Masverse Sdn. Bhd., in cooperation withLembaga Zakat Selangor (LZS)and under the facilitation ofMalaysia Digital Economy Corporation (MDEC), has completed thee-Wakalah Proof-of-Concept (POC). This blockchain-powered platform redefines transparency, efficiency, and accountability inZakat fund distribution.

The initiative, officially commissioned through aLetter of Engagement dated 7 May 2024, followed a rigorous selection process whereMasverse was shortlisted from several technology companiesthat submitted proposals to participate in this pioneering effort. All the firms were first briefed during anindustry engagement session organised by the Malaysia Digital Economy Corporation (MDEC)in collaboration withLembaga 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 withfull 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 traditionalwakalahprocess, ensuringZakat funds are distributed securely and verifiablyviaMasChain, Masverse's public-permissioned blockchain. Through this innovation,each transaction is immutable, traceable, and auditable— allowing LZS to monitor every fund transfer fromWakalah(appointed representative) toAsnaf(eligible recipient) in real time.

During the POC,all the Asnaf successfully withdrew their Zakat funds directly to their bank accounts, withevery transaction recorded on-chain. Allthe participating Wakalahreported positive feedback on the system's usability and transparency, while Asnaf beneficiaries praised the digital process for its speed and convenience. Thefastest withdrawalfrom onboarding to receipt of funds was completed inunder seven minutes.

This milestone directly addresses long-standing issues, such as manual reporting, limited traceability, and potential fraud risks, replacing them withdigital 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 topossibility. It demonstrates thatIslamic 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 ofpurpose-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 adigital signature of trust, ensuring that every ringgit reaches its rightful beneficiary. This model can be replicated globally acrossWaqf, Sadaqah, and other Islamic philanthropic systems.

"This initiative is a milestone in harmonisingsyariah-compliant finance with cutting-edge innovation,"saidMr 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 byMDEC's Blockchain Pilot Programme, the e-Wakalah POC was developed and delivered betweenMay and December 2024, encompassing prototype development, system testing, pilot distribution, and final data analysis.

The system integrates blockchain-based smart contracts, digital wallets, ande-KYCverification for Asnaf — providing a secure end-to-end process for fund management. Feedback from the pilot has also guided proposed enhancements, includingautomated withdrawals,integration with existing LZS systems, andsimplified e-KYC flowsfor non-tech-savvy users.

A Call to the Islamic Digital Ecosystem

The success of e-Wakalah stands as acall to action for Islamic institutions, fintech vendors, and government bodiesto collaborate in building transparent and equitable distribution systems powered by blockchain.

As Masverse continues to advance itsMasChain infrastructureand expand e-Wakalah's capabilities, the platform opens new pathways forglobal Islamic finance institutionsseeking 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 developingMasChain, 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 flagshipBlockchainCert.myande-Wakalahplatforms.

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.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/masverse-and-lembaga-zakat-selangor-pioneer-blockchain-based-zakat-distribution-through-e-wakalah-proof-of-concept-302579144.html

SOURCE Masverse Sdn Bhd