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Singapore-headquartered ZaynFi, a decentralized finance (DeFi) protocol focused on simplifying yield-generation within the DeFi space, has achieved a significant milestone by receiving Shariah approval from Amanie Advisors, a leading global Shariah advisory firm.
This certification positions the protocol as the first DeFi platform to meet the stringent standards of Shariah compliance, opening the door for greater adoption of DeFi within the global Muslim market, ZaynFi said in an announcement on Wednesday.
"This landmark certification not only enhances ZaynFi's credibility but also establishes the foundation for Shariah governance within the DeFi industry," the company said.
Syakir Hashim, ZaynFi co-founder and CEO, emphasized the platform's mission to simplify DeFi for a wider audience. "It expands the reach of our products into the global Muslim market. This is the first time that Shariah governance around DeFi's yield taxonomy has been established, opening up the world of DeFi to a large underserved community."
ZaynFi recently launched the beta version of its product on the BNB Smart Chain (BSC) to a select group of early users. The platform offers users an opportunity to earn above-market yields with their stablecoins while mitigating exposure to the volatility commonly associated with cryptocurrencies.
Growth of Islamic finance products
With Shariah compliance now embedded in the ZaynFi protocol, the platform provides Muslim investors with a secure and ethical avenue to participate in DeFi and leverage its potential benefits.
As the first DeFi platform to obtain Shariah certification, ZaynFi stands at the forefront of a rapidly evolving landscape, providing innovative solutions that bridge the worlds of decentralized finance and Islamic finance.
Islamic finance products, which adhere to the principles of Shariah law, have experienced significant growth in recent years. Shariah-compliant financial instruments operate on the basis of avoiding interest, excessive uncertainty, and investing in activities deemed socially responsible by Islamic scholars. The integration of DeFi with Islamic finance presents a promising synergy, combining the efficiency and transparency of decentralized protocols with the ethical framework of Shariah principles.
ZaynFi was launched in 2022 by co-founders Syakir Hashim and Aziz Zainuddin Earlier this year, the platform announced a US$600,000 funding led by Cur8 Capital, the venture investing arm of UK-based Islamic Finance Guru. 500 Global also co-invested in the round.
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