Australia-based crypto platform Marhaba DeFi says Halal-approved cryptocurrency products have seen strong adoption on its platform, with a goal of releasing a range of new products compliant with Islamic law by the end of 2022.
Launched in 2020, the platform focuses on adhering to the rules of “Islamic finance,” which refers to how companies and individuals raise capital in accordance with Sharia, or Islamic law.
Speaking to Cointelegraph, Marhaba DeFi founder and CEO Naquib Mohammed said that the number of active users of their non-custodial multichain Sahal wallet has grown to around 40,000 since its launch, stating:
“People need a platform where they can trust every token they interact with so we don’t have to hunt different platforms and tap different ones [Islamic] Scholars or experts asking, “Can I invest in this protocol, this token, this strategy?”
“You just download a wallet and get everything that is halal in the crypto ecosystem,” he adds.
marhabawhich means “welcome” in Arabic, also launched four other Islamic law-adapted crypto products this year, which Mohammed says will be an “end-to-end halal ecosystem” for those excluded from the market due to lack of compliance with Sharia.
The first is TijarX, which it believes will be the first Halal Decentralized Exchange (DEX) for commodity-backed tokens, a Halal DeFi staking solution, a liquidity-gathering platform, and a new version of their existing Halal marketplace for non-fungible tokens (NFT) is:
“The fundamental property of the blockchain is its transparency, it is immutable, so bringing Islamic finance to the blockchain makes perfect sense. Because of this transparency, the blockchain is the perfect piece of the puzzle to fill this gap.”
The first cryptocurrencies to be launched on the TijarX DEX this month will be tokenized silver and gold backed by real and verified bullion reserves. Mohammed says more needs to be added to the platform, such as: B. tokenized wheat, barley, soy and cocoa.
According to Mohammed, talks are already underway, but without a verification process that not only ensures the provider has enough liquidity to handle the volume, but also adheres to Islamic laws, nothing will be added to the platform:
“If the company is not Sharia compliant, if it is not halal, then we cannot list it on the platform. It’s all a very time consuming and intensive process, but we’re absolutely fine with it.”
It is this process that caused the MIRO staking platform to take eight months to build “due to the difficulty of addressing Sharia compliance within the space”.
The staking platform is based on the Islamic concept of Ju’ala, something Muhammad describes as a “reward for work.” Users earn a “commission”, a portion of a share of the platform revenue for work within the platform, such as B. Participation in governance and voting on proposals.
Marhaba’s Liquidity Harvester operates under a separate Islamic financial profit and loss sharing arrangement called mudaraba, where one party provides the capital while the other provides labor and both share in the profit and loss.
Mohammed explains that charging or earning interest is considered exploitative in Islam, and the Liquidity Harvester will be a “game changer” for those who are barred from receiving interest by their faith, as it will give them access to a similar style of product.
Related: NFT and Islamic Education: A New Frontier for Religious Education?
Marhaba also offers solutions for Islamic companies using NFTs, while the second version of its NFT marketplace will be tailored for companies, Mohammed announced that it has already partnered with five organizations that will use NFTs.
In April, Marhaba issued the first NFT Halal certification, and Mohammed explained that this is an area he personally wants to ensure ease of use and acceptance of finds, as it gives consumers more transparency about the validity of a company’s Halal certification give:
“This NFT certification is a way to authorize, authenticate and ensure that the certification is valid and has not expired, that the company has renewed their certification.”
“We were very much appreciated in the community for that,” he added.
TijarX is scheduled to go live on September 27th, with the revamped NFT market scheduled for late October. MIRO and the Liquidity Harvester are planned for the first weeks of November and December respectively.