DeFi platform sees strong interest in halal-approved crypto products

Australia-based cryptocurrency platform Marhaba DeFi said it already has significant use of halal-certified cryptocurrency products on its platform, and aims to release a new set of products that comply with Islamic law by the end of 2022.

Launched in 2020, the platform focuses on complying with the rules of “Islamic finance”, which is how businesses and individuals raise funds in accordance with Sharia or Islamic law.

Marhaba DeFi founder and CEO Naquib Mohammed told Cointelegraph that their non-custodial multi-chain “Sahal Wallet” has grown to around 40,000 active users since its launch, stating:

“People need a platform where they can trust every token they interact with, so we don’t have to look on different platforms, leverage different [Islamic] Academics or experts ask ‘Can I invest in this protocol, this token, this strategy? ‘”

“You just download a wallet and it gives you everything halal in the crypto ecosystem,” he added.

Marhaba, which means “welcome” in Arabic, and four other Shariah-compliant crypto products were released this year, Mohammed said, for those excluded from the market due to lack of Shariah compliance, It will be an “end-to-end halal ecosystem”.

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 collection platform, and its existing halal non-fungible tokens ( A new version of the NFT) marketplace.

“The fundamental properties of blockchain are transparency and immutability, so bringing Islamic finance to blockchain makes perfect sense. Because of this transparency, blockchain is the perfect piece of the puzzle to fill this void.”

The first cryptocurrency to launch on TijarX DEX this month will be tokenized silver and gold backed by real and audited gold bullion reserves. Mohammed said there is more to be added to the platform, such as tokenized wheat, barley, soybeans and cocoa.

Mohammed said discussions are already underway, but nothing will be added to the platform without going through a vetting process, which will not only ensure providers have sufficient liquidity to handle transaction volumes, but also comply with Islamic law.

“If the business is not Shariah compliant, if it’s not halal, then we can’t list it on the platform. All of this is a very time-consuming and intensive process, but we’re totally fine with it.”

It was this process that meant its MIRO staking platform took eight months to build “because of the difficulty of addressing Sharia compliance in the space”.

The staking platform is based on the Islamic concept of Ju’ala, which Mohammed describes as a “reward for work”. Users earn “commissions,” which are a portion of the platform’s revenue for doing work within the platform, such as participating in governance and voting on proposals.

Marhaba’s Liquidity Harvester is committed to a separate Islamic financial profit and loss sharing arrangement called “Mudarabah”, in which one party provides capital and the other provides labor, with both parties sharing the profit and loss.

Mohammed explained that charging or earning interest in Islam is considered an exploitative practice, and liquidity harvesters would be a “game changer” for those banned from receiving interest because of their beliefs as they would Access to similarly styled products.

related: NFTs and Islamic Education: New Frontiers in Teaching Religion?

Marhaba also provides solutions for Islamic businesses using NFTs, and the second version of its NFT marketplace will be tailored for businesses, and Mohammed revealed that it has partnered with five organizations that will use NFTs.

In April, Marhaba released its first NFT halal certification, which Mohammed said was an area he wanted to personally ensure discovery of usability and adoption, as it would give consumers greater transparency about the effectiveness of corporate halal certification.

“This NFT certification is a way to authorize, verify and ensure that the certification is valid and not expired, i.e. the business has renewed its certification.”

“We are greatly appreciated within the community,” he added.

TijarX is scheduled to go live on September 27, the revamped NFT marketplace is scheduled for late October, and MIRO and Liquidity Harvester are scheduled for the first few weeks of November and December, respectively.