R3 And Dubai-Based Wethaq Sign A Deal To Develop Sharia-Compliant Platform
R3 has been expanding its partnerships to firms all across the globe. Now, they have struck a deal with Dubai-based fintech startup, Wethaq, to pioneer the financial architecture fo the next-gen Islamic capital market.
Noticeably, Shari'ah principles bar extortion to make profits through interest and prefer exchanges of goods to be backed by physical assets, like gold. But cryptos generally aren’t backed by physical assets, and people can make massive profits through interest. This has caused a great divide in the Islamic community.
Through this partnership, R3 and Wethaq aim to be sharia law compliant. Wethaq’s platform is built on Corda Enterprise. It was originally developed to better the market infrastructure supporting the issuance and trading of Sukuk securities.
According to the Wethaq, there is apparently an unmet demand for Sukuk which can be worth over $120 billion annually. On the other hand, the Corda Enterprise platform is made specifically for practical business use which has added security protocols. This makes it perfect to handle Sukuk capital market.
The CEO of R3, David Rutter had some words to say about this partnership:
“Blockchain is driving an unprecedented period of innovation across capital markets, with more assets moving towards complete digitization. As such, there is no better time to seize the advantages of blockchain to transform global financial systems. Saudi Arabia and the wider Middle East region are areas where we see huge potential for Corda to modernize the economy and our partnership with Wethaq is a step towards achieving that.”
Even Mohammad Alsehli, the CEO of Wethaq says that they have found a valuable and trusted partner in R3 and their Corda Enterprise Software.
Their joint focus is on building the financial infrastructure for Saudi Arabia which is in line with their 2030 vision and UAE. After these countries, they want to expand to the entire Middle East and Southeast Asia. Alsehli adds:
“We invite the wider Sukuk community to join the platform to ease access to capital markets, source new products for investors internationally and more closely integrate Sukuk markets with their global counterparts.”