Al Mabrook, a blockchain tokenization platform based in Ontario, is considering seeking an exempt market dealer (EMD) license from the Canadian securities regulator as part of its growth strategy to bring Halal blockchain-based funding and investment solutions to the North American market, IFN Fintech has learned.
Launched in November 2022, the start-up has been building its technology architecture and is currently working on its first proof of concept (PoC). The idea is to combine crowdfunding and blockchain technology to mobilize Shariah compliant investments through cryptocurrency and the tokenization of assets.
“The main idea of Mabrook is to maximize the profitability of the community and provide an opportunity for Halal investments and returns. To prove ourselves, and test the Al Mabrook platform, we have already initiated a PoC by acquiring a property in Mississauga and renovating it,” according to the platform. It expects to conclude the PoC in June.
Speaking to IFN Fintech, Al Mabrook CEO and Co-Founder Fahad Siddiqui explained that start-up decided on tokenizing real estate first as it is a familiar asset class to the Muslim community. The platform will eventually tokenize other asset classes.
Fahad estimates that the company should have its technology infrastructure ready in September; but before that, it plans to begin its application for an EMD license in July.
EMDs are registered under provincial securities legislation in at least one jurisdiction in Canada. With the license, Al Mabrook will be able to act as a dealer or underwriter for any securities which are prospectus exempt; or, as a dealer for any securities, including investment funds which are prospectus qualified (such as mutual funds) or prospectus exempt, such as pooled funds, provided they are sold to qualified investors.
Licensing could take up to a year, according to Fahad, who also added that while the application is ongoing, the start-up will continue exploring other markets including Saudi Arabia and the UAE.
“Once we are done with the use case, then we are going to deploy it in several other countries as well,” Fahad said.
Following the launch of the PoC, the firm will then begin its security token offering, followed by commencing a Mudarabah-based staking and vesting app, completing a minimum viable product of the platform and launching the first project to co-invest with the community, according to its roadmap.
The Shariah compliance of Al Mabrook’s operations is vetted by its internal Shariah board, chaired by Mufti Ismail Desai.