MRHB.Network, the Australian-based crypto platform, said there has been a strong take-up of Halal-approved cryptocurrency products on its platform, with aims to release a suite of new products which align with Islamic law by the end of 2022.
It has been reported that the platform, launched in 2020, 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.
Naquib Mohammed, the founder and CEO of MRHB.Network, said that active users of their noncustodial multichain Sahal Wallet have grown to around 40,000 since its launch.
“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.”
However, MRHB, short for 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 report said that the first is TijarX, which he said 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 nonfungible token (NFT) marketplace.
“The fundamental property of blockchain is its transparent, 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.”
Likewise, the first cryptocurrencies launching this month on the TijarX DEX will be tokenized silver and gold backed by real and audited bullion reserves. Mohammed said there’s more to be added to the platform such as tokenized wheat, barley, soya, and cocoa. He said that discussions are already underway but nothing is added to the platform without a vetting process which ensures not only that the provider has enough liquidity to handle the volume but also is complying with Islamic laws.
“If the business is not Sharia 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 are absolutely fine with it.”
It’s this process that meant its M.I.R.O. staking platform took eight months to build “because of the difficulty of addressing the Shariah compliance within the space.” The staking platform is based on the Islamic concept of Ju’ala, something Mohammed describes as “rewards for working.” Users earn a “commission,” part of a share of the platforms’ revenue for doing work within the platform such as participating in governance and voting on proposals.
Thus, Marhaba’s liquidity harvester works on a separate Islamic financial profit and loss sharing arrangement called Mudarabah, where one party provides the capital while the other includes labor and share in the profits and losses. Mohammed explained charging or earning interest in Islam is considered exploitative, and the liquidity harvester will be a “game changer” for those barred from accepting interest due to their beliefs as they will gain exposure to a similar style of product.