The Stellar (XLM) Development Foundation has received a Sharia Certification for Payments and Asset Tokenization, making it the first Distributed Ledger Technology (DLT) to obtain the recognition.
The certification, which was gotten from the Shariyah Review Board (SRB), a leading international Sharia advisory agency licensed by the Central Bank of Bahrain, attests to Stellar’s determination to bring its services to the Muslim, and the Middle East especially.
Interestingly, Stellar has become the first distributed ledger protocol to receive Sharia compliance certification in money transfer and asset tokenization space. The certification extends to applications and usages of lumens (XLM).
In a statement, Stellar indicated:
“We advance our mission of financial access and inclusion by obtaining a Sharia compliance certification for the Stellar technology and network.”
“The Shariyah Review Board (SRB), a leading international Sharia advisory agency licensed by the Central Bank of Bahrain, has reviewed the properties and applications of Stellar and has promulgated guidance and guidelines that enable Sharia compliant applications of Stellar technology in Islamic financial institutions.”
The accreditation, will help grow the Stellar ecosystem in regions where financial services require compliance with Islamic financing principles.
The statement maintained that at the moment, Islamic financial institutions in the Gulf Collaboration Council like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE and some parts of Southeast Asia like Indonesia and Malaysia are now going to be integrating Stellar technology in their Sharia-compliant product and service offerings.
The development is no doubt a big advancement for the Stellar network for the fact that this region is an endpoints of popular foreign worker remittance corridors.
Stellar, is now planning to discuss with global financial institutions on how to best use Stellar in their Sharia-compliant financial services and products. This announcement is no doubt an additional boost for Stellar.
Few days back, Coinbase announced it is exploring adding Stellar (XML) among other coins. However, the announcement did not indicate the addition of Ripple to the platform. The move heightened the price of Stellar by 22% since.
Different observers are of the opinion that the announcement is aimed at curtailing in-house trading as allegedly noticed in the past.