Australia-based crypto platform Marhaba DeFi says there has been strong adoption of Halal-approved cryptocurrency products on its platform, aiming to release a range of new products in compliance with Islamic law by the end of 2022. .
Launched in 2020, the platform is focused on adhering to the rules of “Islamic finance,” which refers to how businesses and individuals raise capital in accordance with Sharia or Islamic law.
Speaking to UKTN, Marhaba DeFi founder and CEO Naquib Mohammed said active users of their non-custodial multichain “Sahal Wallet” have grown to about 40,000 since its launch, stating:
“People need a platform that they can rely on every token they interact with so we don’t have to hunt across platforms and use different [Islamic] scholars or experts asking ‘can I invest in this protocol, this token, this strategy?’”
“You just download a wallet and you get everything halal in the crypto ecosystem,” he adds.
Marhaba, which means “welcome” in Arabic, also has four more Islamic law-aligned crypto products to be released this year, something Mohammed says will be an “end-to-end halal ecosystem” for those who love the market are excluded due to the lack of compliance with Sharia.
The first is TijarX, which he says is the first halal decentralized exchange (DEX) for commodity-backed tokens, a halal DeFi staking solution, a liquidity harvesting platform and a new version of its existing halal non-fungible token ( NFT) marketplace.
“The fundamental property of blockchain is that it is transparent, it is immutable, so it makes perfect sense to bring Islamic finance to the blockchain. That transparency makes blockchain the perfect puzzle piece that fits into this hole.”
The first cryptos to be launched this month on the TijarX DEX will be tokenized silver and gold backed by real and audited precious metal reserves. Mohammed says more needs to be added to the platform, such as tokenized wheat, barley, soy and cocoa.
Mohammed says discussions are already underway, but nothing will be added to the platform without a vetting process that not only ensures the provider has enough liquidity to handle the volume, but also complies with Islamic laws.
“If the company is not sharia-compliant, if it’s not halal, we can’t list it on the platform. This is all a very time consuming and intensive process, but we are fine with it.”
It is this process that meant that the MIRO deployment platform took eight months to build “due to the difficulty of addressing Shariah compliance within the space.”
The strike platform is based on the Islamic concept of Ju’ala, something Mohammed describes as “rewards for work”. Users earn a “commission”, which is a portion of a portion of the platforms revenue for performing work within the platform, such as serving on the board and voting on proposals.
Marhaba’s liquidity harvester is working on a separate Islamic profit and loss sharing scheme called “Mudarabah”, where one party provides the capital while the other party provides labor and both share in the profit and loss.
Mohammed explains that charging or earning interest in Islam is considered exploitation, and the liquidity harvester will be a “game changer” for those who cannot accept interest because of their beliefs, as they will gain exposure to a similar product.
Related: NFT and Islamic Education: A New Frontier to Teach Religion?
Marhaba also provides solutions for Islamic companies using NFTs. The second version of its NFT marketplace will be tailored to businesses. Mohammed revealed that it is already working with five organizations that will use NFTs.
In April, Marhaba issued the first NFT Halal certification and Mohammed indicated that this is an area he personally wants to ensure usability and acceptance as it will give consumers more transparency about 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.”
“For that, we were greatly appreciated within the community,” he added.
TijarX will go live on September 27, with the revamped NFT market set for late October, MIRO and the Liquidity Harvester scheduled for the first weeks of November and December respectively.