Australia-based crypto platform Marhaba DeFi says there has been strong use of Halal-approved crypto products on its platform, with aims to release a series of new products that are compatible 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 according to Sharia, or Islamic law.
Speaking to Cointelegraph, the founder and CEO of Marhaba DeFi, Naquib Mohammed, said that active users of his securityless multi-chain “Sahal Wallet” have 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 go hunting around on different platforms, tapping different ones. [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 that is halal in the crypto ecosystem,” he adds.
Marhaba, meaning “welcome” in Arabic, also has four more Islamic law-aligned crypto products releasing this year, something Mohammed says will be an “end-to-end halal ecosystem” for those excluded from the market due to the lack of Sharia – compliance. .
The first is TijarX, which it says is the first halal decentralized exchange (DEX) for commodity-backed tokens, a halal DeFi staking solution, a liquid harvesting platform, and a new version of its existing halal non-fungible token (NFT) market. .
“The fundamental property of blockchain is its transparency, it’s immutable, so bringing Islamic finance onto the blockchain makes perfect sense. Because of that transparency blockchain is the perfect puzzle piece that fits this gap.”
The first cryptos launched this month on the TijarX DEX will be tokenized silver and gold backed by real and verified bullion reserves. Mohammed says there is more to add to the platform such as tokenized wheat, barley, soy and cocoa.
Mohammed says that discussions are already taking place, but nothing is added to the platform without a screening process that ensures not only that the provider has sufficient liquidity to handle the volume, but also complies with Islamic laws.
“If the business is not Sharia-compliant, if it’s not halal, then we can’t list it on the platform. This is all a very time-consuming and intensive process, but we’re perfectly fine with it.”
It was this process that meant its MIRO staking platform took eight months to build “due to the difficulty of dealing with Shariah compliance in space.”
The staking platform is based on the Islamic concept of Ju’ala, something Mohammed describes as “rewards for working”. Users earn a “commission”, a portion of a share of the platforms revenue for doing work within the platform such as participating in management and voting on proposals.
Marhaba’s liquidity harvester works on a particular Islamic financial profit and loss sharing arrangement called “Mudarabah” where on one party provides the capital while the other provides labor and both share in the profits and loss.
Muhammad explains that charging or earning interest in Islam is considered exploitative, and the liquidity harvest will be a “game changer” for those prohibited from accepting interest because of their beliefs because they will gain exposure to a similar style product.
Related: NFT and Islamic education: a new frontier for teaching religion?
Marhaba also provides solutions for Islamic businesses using NFTs, the second version of its NFT marketplace will be adapted to businesses, Mohammed revealed that it is already partnered with five organizations that will use NFTs.
In April, Marhaba issued the first NFT Halal certificate and Mohammed expressed that this is an area that he wants to personally ensure that usability and adoption are found, as it will give consumers greater transparency about the validity of the Halal certificate of business
“This NFT certificate is a way to authorize, authenticate and ensure that the certificate is valid and does not expire, that the business has renewed its certificate.”
“We were very much appreciated in the community for that,” he added.
TijarX will go live on September 27th, with the revamped NFT market set for late October, MIRO and the Liquidity Harvester scheduled for the first weeks of November and December respectively.