Solowin Holdings (NASDAQ: AXG) has announced that its AXBHD stablecoin framework has completed a formal Sharia review, marking the first time a central bank-regulated stablecoin has received Sharia certification. The review was conducted by Shariyah Review Bureau W.L.L., which evaluated the stablecoin's issuance mechanism, reserve investment framework, governance arrangements, and revenue model for compliance with Islamic finance principles. The certification also establishes an ongoing Sharia governance framework, reinforcing Solowin's commitment to transparency and responsible governance as it prepares to launch AXBHD.
This development is significant for the intersection of digital assets and Islamic finance. Islamic finance prohibits interest (riba), excessive uncertainty (gharar), and investment in prohibited industries (haram). By obtaining Sharia certification, AXBHD aims to assure Muslim investors that the stablecoin operates in accordance with these principles. This could potentially unlock a substantial market, as Islamic finance assets are estimated to be over $2 trillion globally, according to the Islamic Financial Services Board.
The certification is part of Solowin's broader strategy to integrate blockchain and artificial intelligence technologies into a compliant digital economy platform. The company, established in 2016, operates a dual-token digital economy super platform with two core business pillars: Digital Asset Tokens and AI Tokens. Its offerings include stablecoin issuance and payments, asset tokenization, securities trading, and AI-powered services. Solowin's ecosystem includes brands such as AX COIN, AX ONE, FERION, SOLOMON, SCION, and KOVAR.
Solowin's move comes at a time when regulatory clarity for stablecoins is evolving globally. The company's subsidiary, AX Coin Bahrain B.S.C. Closed, is a regulated stablecoin issuer, and the Sharia certification adds another layer of compliance. This could set a precedent for other stablecoin issuers seeking to cater to Islamic finance markets.
The Sharia review evaluated key aspects of the stablecoin's operations. The issuance mechanism was assessed to ensure it does not involve interest-based transactions. The reserve investment framework was scrutinized to confirm that reserves are invested in Sharia-compliant assets. Governance arrangements were reviewed to ensure transparency and accountability. The revenue model was examined to ensure it avoids prohibited activities.
By obtaining this certification, Solowin aims to build trust among Muslim investors and institutions. This could lead to increased adoption of AXBHD in regions with significant Muslim populations, such as the Middle East and Southeast Asia. It also positions Solowin as a pioneer in the niche of Sharia-compliant stablecoins.
The announcement was made through a press release, which is available at https://ccw.fm/AtbdNAb. For more information about Solowin Holdings, visit https://www.alloyx.com or its investor relations page at https://ir.alloyx.com.
