DeFi platform sees strong interest in halal-approved crypto products
Australian crypto platform Marhaba DeFi says there has been strong adoption of Halal-approved cryptocurrency products on its platform, in a bid to launch a suite of new Islamic law-compliant products. 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 active users of their non-custodial multi-chain Sahal wallet have grown to around 40,000 since launch, saying:
“People need a platform where they can trust every token they interact with, so we don’t have to search across different platforms, tapping into different [Islamic] academics or experts asking “can I invest in this protocol, this token, this strategy?”
“You just download a wallet, and it will give you everything halal in the crypto ecosystem,” he adds.
Marhabawhich means “welcome” in Arabic, is also offering four other Islamic law-aligned crypto products this year, which Mohammed says will be an “end-to-end halal ecosystem” for those shut out of the market due to lack of compliance. to Sharia.
The first is TijarX, which it claims is the first halal decentralized exchange (DEX) for commodity-backed tokens, a halal DeFi staking solution, a liquidity gathering platform and a new version of its marketplace. existing non-fungible halal tokens (NFT):
“The fundamental property of the blockchain is its transparency, it is immutable, so bringing Islamic finance onto the blockchain makes perfect sense. Because of this transparency, blockchain is the perfect puzzle piece that fills this gap.
The first cryptocurrencies launched this month on the TijarX DEX will be tokenized silver and gold backed by real, audited bullion reserves. Mohammed says there is more to add to the platform, such as symbolized wheat, barley, soy and cocoa.
Mohammed says discussions are already underway but nothing is added to the platform without a vetting process that not only ensures the provider has enough cash to handle the volume, but also that they follow Islamic laws. :
“If the business is not Sharia compliant, if it is not halal, then we cannot list it on the platform. This is all a very long and intensive process, but we are all for it.
It was this process that took eight months to build its MIRO staking platform “due to the difficulty of meeting Shariah compliance in space.”
The staking platform is based on the Islamic concept of Ju’ala, something Mohammed describes as “rewards for hard work”. Users earn a “commission”, a portion of a platform’s revenue share for performing work within the platform, such as participating in governance and voting on proposals.
The Marhaba cash collector is working on a separate profit and loss sharing Islamic financial arrangement called Mudaraba, where one party provides the capital while the other provides the labor and both share the profits and losses.
Mohammed explains that charging or earning interest in Islam is considered exploitative, and the cash collector will be a game-changer for those who cannot accept interest due to their beliefs, as they will be exposed to a similar product style.
Related: NFT and Islamic education: a new frontier for teaching religion?
Marhaba also provides solutions for Islamic businesses using NFTs while the second version of its NFT Marketplace will be tailored to businesses, Mohammed revealed that he has already partnered with five organizations that will use NFTs.
In April Marhaba released the first NFT Halal certification and Mohammed said this was an area he wanted to personally ensure usability and adoption as it would give consumers greater transparency on the validity of a company’s Halal certification:
“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 its certification.”
“We were highly regarded within the community for that,” he added.
TijarX is set to go live on September 27, with the revamped NFT Marketplace scheduled for late October. MIRO and Liquidity Harvester are scheduled for the first weeks of November and December, respectively.