As Islamic finance nears $12.5 billion, Shariah-compliant crypto projects aim to serve two billion Muslims

This rising interest is creating momentum for platforms that align with Islamic financial principles, including the prohibition of riba (interest), gharar (uncertainty), and associations with haram (forbidden) industries.

As Islamic finance continues its trajectory towards $12.5 billion, there's a burgeoning demand for Shariah-compliant crypto products to serve two billion Muslims worldwide. However, a new report by INPUT underscores the lag in supply despite the vast potential.

According to the report and a note shared with crypto.news, the Islamic finance sector, currently valued at $8 billion, is projected to reach $12.45 billion by 2028, growing at a rate of 11.7% annually.

This burgeoning interest is fueling momentum for platforms that align with Islamic financial principles—the prohibition of riba (interest), gharar (uncertainty), and associations with haram (forbidden) industries.

Digital assets adhering to Islamic law

Among the leading projects are HAQQ Network, MRHB, Sidra Chain, and Goldsand (formerly Inshallah Finance), all of which are constructing ecosystems around DeFi and digital assets in compliance with Islamic law.

HAQQ Network stands out as the largest, boasting $400 million in funding and over 6 million users across its product suite, including Islamic Coin, which allocates 10% of token issuance to charity.

MRHB's four-product DeFi stack includes TijarX and EmplifAI, while Goldsand supports halal staking with $4.5 million in staked assets.

Sidra Chain, on the other hand, has processed nearly 13 million transactions from over 700,000 users.

Despite this progress, the report highlights a shortfall in offerings compared to demand—particularly among Gen Z Muslims, 85% of whom are already engaging with Islamic banking products.

Experts emphasize the need for regulatory clarity and standardized Shariah governance to guide the integration of crypto with Islamic principles.

With Islamic finance projected to reach $4 trillion globally, Shariah-compliant crypto may become a pivotal pillar of the emerging digital economy—provided it can scale to meet the burgeoning demand.