The rapidly expanding Islamic finance market is creating significant demand for Shariah-compliant crypto, yet the development of suitable digital asset projects is lagging, presenting a major challenge and opportunity.
With the Islamic finance sector currently valued at $8 billion and projected to surge to $12.45 billion by 2028 at an 11.7% annual growth rate, the need for ethically aligned financial instruments is clear. This growth fuels interest in crypto platforms adhering to core Islamic principles, such as prohibiting interest (riba) and uncertainty (gharar), and avoiding industries deemed forbidden (haram).
Several pioneering projects are working to bridge this gap. Platforms like HAQQ Network, MRHB, Sidra Chain, and Goldsand are building ecosystems focused on DeFi and digital assets compatible with Islamic law. HAQQ Network leads the pack, boasting $400 million in funding and over 6 million users for products like Islamic Coin, which dedicates 10% of its issuance to charitable causes.
Other notable efforts include MRHB’s multi-product DeFi suite featuring TijarX and EmplifAI, and Goldsand enabling halal staking with $4.5 million in assets currently staked. Sidra Chain also shows considerable traction, having processed nearly 13 million transactions for its 700,000+ user base.
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Despite these advancements, available offerings fall short of meeting the burgeoning demand. This is particularly evident among younger generations, with reports indicating 85% of Gen Z Muslims actively seeking Islamic banking products and services aligned with their values.
The bottleneck highlights a critical need for clearer regulatory frameworks and standardized Shariah governance for digital assets. As global Islamic finance potentially reaches $4 trillion, successfully scaling Shariah-compliant crypto could position it as a cornerstone of the future digital economy, provided the supply side can mature to meet user expectations.