The Stellar (XLM) Development Foundation has become the first Distributed Ledger Technology (DLT) to receive an Islam-compliant Sharia Certification for Asset Tokenization and Payments. The blockchain technology of Stellar has been awarded the certification by the Shariya Review Board (SRB), which is an international level advisory agency with a license from the Central Bank of Bahrain.
The aim of Stellar is to promote financial access as well as inclusion at the global level. The Foundation wants to provide low-cost and reliable financial technologies by building open-source, public software.
According to the SRB authorities, “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.”
Middle East countries to adopt Stellar in their service offerings
Stellar is determined to introduce its services to the Middle East region and the Sharia Certification is the reward of all the efforts that the company has been taking in this direction. Now, the network will be able to work with all the payment processors and banking institutions that are operating in and out of the Middle East. According to the announcement, the Sharia compliance certification will now allow the usages and applications of XLM.
After this certification, most of the countries in the Middle East including Kuwait, Bahrain, Qatar, Oman, UAE, Malaysia, Saudi Arabia, and Indonesia can now integrate the blockchain technology of Stellar in their Sharia-approved service and product offerings. Also, the accreditation will enable Stellar to spread its ecosystem in the regions particularly where the financial services require compliance with Islamic financing principles.
Sharia compliance- a big advancement for Stellar platform
The Middle East region is one of the biggest and most popular corridors for foreign worker remittance. Hence, getting the Sharia compliance is a big advancement for the Stellar network. Importantly, it will also give Stellar a competitive edge over its rivals operating in the same space, especially Ripple (XRP). The company has plans to discuss issues like how it can best use the technology of Stellar in the Sharia-compliant products and financial services with global financial institutions.