In another nod to Islamic social finance instruments and fintech, the private sector arm of the IsDB will be driving blockchain-powered Waqf projects in partnership with an Islamic fintech start-up.
The Islamic Corporation for the Development of the Private Sector (ICD) has engaged with Southeast Asia-headquartered Finterra by way of an MoU to explore joint Islamic digital economy opportunities utilizing the latter’s proprietary blockchain systems — SadaqahChain, WAQFChain and ZakatChain.
“This partnership will create new opportunities of investing into global Waqf projects, while showcasing Waqf investment opportunities to a much wider range of retail investors,” Finterra Founder Hamid Rashid shared.
The crux of the collaboration is to deploy Finterra’s Islamic social finance blockchain platforms in ICD’s member countries, particularly in the area of crowdfunding. Both entities will engage with regulated or licensed crowdfunding platforms in OIC member countries “soon” to onboard operators onto their joint project.
The strong focus on Islamic social finance is part of a wider group-level agenda at the IsDB where the UN Sustainable Development Goals have been embedded into its DNA. Earlier this month, the ICD formed a partnership with the United Nations Resident Coordinator’s Office in Saudi Arabia to jointly develop the Waqf asset class in the Kingdom.
Aside from mobilizing funding through crowdfunding, the ICD–Finterra partnership will also support the start-up’s other initiatives including digital wallet, e-commerce, online money services as well as training and certification programs.