The Australian-based cryptocurrency platform Marhaba DeFi says there has been a significant increase in the use of Halal-approved cryptocurrency on its platform. The company the intention of releasing a collection of products that are aligned with Islamic laws at the end of 2022.
In 2020, the platform is geared towards following the guidelines in “Islamic finance” which refers to the way that individuals and businesses invest capital in accordance with Sharia or Islamic law.
According to Asian Trade, Marhaba DeFi founder and CEO Naquib Mohammed claimed that customers who are using their multichain that is not custodial Sahal Wallet have grown to approximately 40,000 since the wallet’s debut, and stated:
“People need a platform where they can trust every token they interact with, so we don’t have to go hunting on different platforms, tapping into different [Islamic] scholars 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’s halal in the crypto ecosystem,” the author adds.
Marhaba that means “welcome” in Arabic, is also home to four other Islamic legal-adjusted crypto products that will be released this year. Mohammed claims will create an “end-to-end halal ecosystem” for those who are not able to access the market because of the absence of Sharia conformity.
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One of them is TijarX that he claims is the first decentralized halal exchange (DEX) for tokens that are backed by commodities and a Halal DeFi staking service and a platform for harvesting liquidity as well as a new version of its current Halal non-fungible token (NFT) marketplace:
“The most fundamental characteristic of blockchain is that it is transparent and immutable nature, which is why the idea of bringing Islamic finance into the blockchain is logical. Because of its transparency, blockchain is the ideal puzzle piece that fills this gap.”
The first cryptocurrency to be launched next month TijarX DEX will be tokenized gold and silver that are backed by genuine and certified bullion reserves. Mohammed believes there’s more that can include on the exchange, such as tokenized barley, wheat, soya and cocoa.
Mohammed says that discussions are in progress, but no information is posted to the platform until there is an approval process that ensures that the platform has sufficient liquid resources to handle the demand, but is also in compliance with Islamic law:
“If the company isn’t Sharia conforming, or in the event that it’s not halal then it’s not able to be listed on our platform. This is an extremely lengthy and time-consuming procedure, but we’re totally happy with it.”
This is the reason that the M.I.R.O. stake platform took eight years to construct “because of the difficulty of addressing the Shariah compliance within the space.”
The staking platform is built in the Islamic concept of Ju’ala which Mohammed refers to as “rewards for working.” Users are paid an “commission,” part of an amount of the platform revenues for performing work on the platform, such as being a part of the governance process and the voting process on proposed ideas.
Marhaba’s liquidity harvester operates in conjunction with an Islamic financial profit-sharing arrangement known as Mudarabah, where one party pays for the capital while the other one provides labor, and both share the loss and profits.
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Mohammed says that charging the interest rate within Islam is considered to be a form of exploitation, which is why the liquid harvester is expected to be an “game changer” for those prohibited from taking interest because of their beliefs, as they will be exposed to the same kind of product.
Marhaba provides solutions for Islamic companies that use NFTs. While it is preparing to launch a second edition of the marketplace for NFT is geared towards businesses, Mohammed revealed it’s already joined with five businesses which will use NFTs.
The month of April saw Marhaba was able to issue its very first NFT Halal certification. Mohammed declared that this was an area he wanted to personally make sure that it is a success and acceptance, since it gives consumers more assurance of the legitimacy of a company’s Halal certification:
“This NFT certification is a way to authorize, authenticate and ensure that the certification is valid, and is not expired, that the business has renewed their certification.”
“We were appreciated greatly within the community for that,” He added.
TijarX is scheduled to start trading on September. 27. The updated NFT market scheduled for the end of October. M.I.R.O. along with The Liquidity Harvester are slated for the beginning of November and the month of December respectively.