KUALA LUMPUR, Malaysia – October 9, 2025 – In a landmark collaboration that merges Islamic finance with emerging technology, Masverse Sdn. Bhd. has successfully completed the e-Wakalah Proof-of-Concept (POC) in partnership with Lembaga Zakat Selangor (LZS). The initiative, facilitated by the Malaysia Digital Economy Corporation (MDEC), introduces a blockchain-powered platform that aims to revolutionize transparency, efficiency, and accountability in the distribution of zakat funds.
The project began with a Letter of Engagement dated May 7, 2024, following a rigorous selection process. Masverse was chosen from a pool of technology companies that had submitted proposals after being briefed in an industry engagement session organized by MDEC and LZS. This marked the beginning of one of Malaysia’s first blockchain-based Islamic social finance pilots.
By December 2024, LZS officially signed off on the project data, validating the outcomes and confirming the success of the proof-of-concept. The POC demonstrated significant potential to reshape how zakat is managed and distributed.
The e-Wakalah model modernizes the traditional wakalah (agency) process by digitizing fund distribution through MasChain, Masverse’s public-permissioned blockchain. This ensures that every transaction is immutable, traceable, and auditable. With this system, LZS can monitor the entire zakat distribution process in real time — from the appointed Wakalah to the eligible Asnaf (recipients).
During the pilot phase, all Asnaf were able to withdraw their zakat funds directly into their bank accounts, with each transaction recorded on-chain. The response from participants was overwhelmingly positive. Wakalah representatives highlighted the system’s transparency and ease of use, while Asnaf beneficiaries praised its speed and convenience. In fact, the fastest transaction — from onboarding to fund disbursement — took less than seven minutes.
This milestone addresses several long-standing issues in zakat distribution, such as manual reporting, lack of traceability, and fraud risks. These are now replaced with digital audit trails, automated verification, and data integrity at every step of the process.
Beyond its technological success, the e-Wakalah initiative sets a new benchmark for Islamic fintech. It proves that Islamic social finance can evolve through innovation without compromising on the core principles of amanah (trust), ‘adl (justice), and shafafiyyah (transparency). The system also introduces the concept of purpose-bound money (PBM) — ensuring every tokenised zakat fund is digitally programmed for a specific use, preventing misuse and ensuring accurate allocation to the correct Asnaf categories.
“This initiative is a milestone in harmonising syariah-compliant finance with cutting-edge innovation,” said Mr. Chew Kian Kok, Chief Executive Officer of 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.”
The POC was developed under MDEC’s Blockchain Pilot Programme and implemented between May and December 2024. The development process included prototype design, system testing, a pilot zakat distribution, and data analysis. Core technologies included blockchain-based smart contracts, digital wallets, and e-KYC verification for Asnaf, ensuring a secure, end-to-end distribution process.
Feedback from the pilot phase also helped shape proposed improvements, including automated withdrawals, smoother integration with LZS’s existing systems, and simplified e-KYC procedures for less tech-savvy users.
The success of e-Wakalah stands as a call to action for Islamic institutions, fintech companies, and regulatory bodies to come together in building transparent and equitable digital finance systems. The platform is designed to be scalable and replicable — not only for zakat, but also for waqf, sadaqah, and other forms of Islamic philanthropy.
“This is Malaysia’s signal to the world,” added Mr. Chew. “Islamic finance has always upheld the principles of accountability and trust — and through blockchain, we can now make those 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 that develops MasChain, a Layer-1 public-permissioned blockchain built to power trusted digital ecosystems. The company delivers enterprise-grade solutions for digital identity, supply chain, ESG tracking, and Islamic finance — including platforms like BlockchainCert.my and e-Wakalah.
About Lembaga Zakat Selangor (LZS)
LZS is the official zakat authority for Selangor, Malaysia, responsible for the collection and distribution of zakat funds. Its mandate is to ensure transparent, effective, and syariah-compliant management of zakat for the benefit of eligible Asnaf.