IFN Fintech has learned that Canadian tokenization platform Al Mabrook Financial is in the “final stages” of securing a license in El Savador, just as it gained Shariah approval for its business model.
Launched in November 2022, the Halal tokenization platform had sought to secure an exempt market dealer license from the Canadian securities regulator as part of its growth strategy to bring Muslim-friendly blockchain-based funding and investment solutions to the North American market as we reported last year.
However, regulatory stumbling blocks and a protracted process, largely due to the absence of dedicated enabling policies according to CEO Fahad Siddiqui, and an invitation by the El Salvadoran authorities, have instead led the Ontarian firm to apply for a license in the Central American nation.
“As Mabrook approaches the final stages of securing its license, the platform is undergoing rigorous smart contract and cyber security certifications, set to be completed in the coming month,” confirmed Fahad. Mabrook’s internal Shariah board, led by Mufti Ismail Desai, recently issued a Fatwa approving the platform’s model.
El Savador has been a strong advocate for cryptocurrencies and tokenization, embracing the new technology with welcoming regulations and policies. In 2021, it became the first country in the world to recognize bitcoin as a legal tender.
While the El Salvadoran license application is ongoing, Mabrook is not giving up its goal of serving the Canadian market.
Fahad told IFN Fintech that the company is working toward setting up a joint venture or partnership with an existing securities company in Canada to be able to provide its service in the market, which is currently without any dedicated digital asset regulations nor regulator.
The start-up is also on the hunt for new partners. It recently partnered with MRHB Network to offer the latter’s 300,000 Sahal Wallet users access to invest in fractional real estate and other Shariah compliant businesses in Canada.
According to its roadmap, Mabrook intends to offer a security token, 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.