The Islamic Development Bank (IDB) of Saudi Arabias research outfit accepts blockchain technology to develop new sharia-complaint financial products. According to Reuters the Islamic Research and Training Institute has formed an agreement with Ateon and SettleMint, two startup companies which will perform the studies of technical feasibility of any research and development. Sharia-compliant finance is against collection of loan’s interest and speculative investments but is interested in instant asset exchanges.
Matthew Van Niekerk, CEO and founder of SettleMint, stated that:
“We are very excited to be able to contribute to this project. One of the core values of SettleMint has always been to change the world for the better, and by using the blockchain technology to further financial inclusion and development of the 57 member countries, fits our ambitions to the letter.”
SettleMint stated that smart contracts in blockchain network can automate operations for Islamic institutions while “alleviating the additional administrative and legal complexities as well as redundancies associated with Sharia-compliant financial products”.