Following the UAE central bank’s approval of stablecoin regulation, the Shariah-compliant blockchain network HAQQ is preparing to introduce a range of asset-backed tokens, including gold-backed stablecoins and tokenised securities.
The network is also planning to launch a tokenised sukuk, a Shariah-compliant bond, with the global sukuk market expected to exceed $1T this year.
HAQQ’s gold-backed stablecoin aims to serve the Islamic interbank market through the Tawarruq platform, providing tokenised commodities as a more efficient alternative to traditional Shariah-compliant interbank financing.
“We will collaborate with Shariah-compliant institutions and asset owners to tokenise their offerings,” Alex Malkov, Co-founder of HAQQ Network, told Arabian Business.
“We will ensure that all tokenisation processes adhere to Islamic values and principles. This might include mechanisms like Musharakah or the elimination of interest-based systems such as Riba,” he said.
Malkov mentioned that HAQQ is currently securing the necessary licences and approvals to issue the proposed stablecoins and sukuk within regulatory frameworks.
Gold-backed Islamic stablecoin
Malkov stated that digitising instruments like sukuk on HAQQ’s blockchain platform could significantly enhance efficiency and transparency in the market.
Similarly, the gold-backed token represents a major step for the Islamic financial ecosystem, linking digital assets to physical ones.
“Each token will be tied to gold, a tangible asset, which minimises speculation and naturally avoids interest accrual, aligning perfectly with Islamic financial principles,” he said. Accessible through the HAQQ Wallet, this stablecoin aims to promote financial inclusion and reduce unnecessary costs for users.
“Users can utilise this token for transactions within the HAQQ ecosystem, including purchases in Shariah-compliant online marketplaces or using DeFi apps built on our platform,” the HAQQ Network Co-founder added.
This initiative is expected to enable online marketplace purchases for over two billion Muslims worldwide.
Industry experts believe HAQQ’s introduction of tokenised commodities offers a modern alternative to traditional interbank transactions.
Malkov also shared the network’s plans to expand its stablecoin offerings to the capital market.
“Looking ahead, we plan to broaden our offerings to potentially include tokenised securities,” he said.
Partnering for market reach
Malkov noted that the decision to issue a variety of stablecoins was based on their assessment that the market is currently ready for such products.
“We see significant potential in tokenising real-world assets due to market maturity and technological advancements in recent years.”
“This enables fractional ownership, increased liquidity, and efficient trading,” he said.
Malkov also highlighted that Islamic investment structures like Mudarabah and Musharakah can be seamlessly executed through the platform while adhering to Shariah principles.
“So, in terms of our market plans, the first step is partnerships.”
The HAQQ Co-founder explained that the Network will first develop new products tailored to the specific needs of the Islamic finance community and then expand their market reach through a series of partnerships.
“We understand the diverse needs of global Islamic markets. We are committed to localisation efforts, translating our platform and marketing materials into multiple languages and adapting offerings to meet regional regulations and financial practices,” he said.
Malkov concluded that the HAQQ Network aims to bridge the gap between the Islamic finance sector and innovative blockchain technology.
“Our next goal is to provide our customers with greater control over their finances and access to a wider range of Shariah-compliant financial instruments.
“We also aim to drive financial inclusion for unbanked or underbanked populations within the Muslim community,” he said.
