The rapid adoption of frontier technologies is often accompanied with regulatory complexities and ethical scrunity. As Muslim consumers become increasingly conscious of their investment options, companies are looking to lean into values-based alignments.

ZIGChain, a blockchain ecosystem that supports decentralized finance and real-world asset tokenization, recently received a Shariah nod from Amanie Advisors for its proof-of-stake consensus mechanism, helping obviate a long-standing barrier to blockchain adoption. 

Blockchain staking is essentially the process of locking up cryptocurrencies to help secure a blockchain network in exchange for rewards, similar to earning interest in a savings account.

We speak with Abdul Rafay Gadit, co-founder of ZIGChain, about it is essentially means and how will the certification translate into meaningful adoption of the underlying technology. 

Talk us through the certification process of the proof-of-stake consensus protocol?
Gadit: Amanie [Advisors] approached this the same way they would assess a financial structure. They wanted to understand exactly how value is created, who is doing the work, what risks exist, and how rewards are calculated.

We shared the full mechanics of our validator system, including how validators are selected, what they must do to keep the network running, what happens if they fail, and how rewards change based on real performance. They also reviewed our governance and the rules that surround staking, because Shariah compliance is not just about the outcome; it is about the structure and the conduct.

The key part of the review was the nature of the rewards. They tested whether validator rewards are linked to genuine work and shared risk and the source of the return they are receiving.

Validators are providing a real service to the network, and returns are earned through that service, with risk and variability. That is why they were comfortable issuing the certification.

How will the certification encourage blockchain uptake across Islamic finance transactions?
Gadit: For a lot of Islamic institutions, the challenge has not been a lack of interest in blockchain. It has been commonly debated whether the yield mechanics behind staking are clearly Shariah-compliant. Without the clarity, compliance teams and Shariah boards tend to avoid it altogether, even if the underlying technology is useful.

This certification gives Shariah boards and compliance teams a concrete and definitive metric they can rely on. It confirms that validator rewards on ZIGChain are tied to real network work and shared risk, allowing for institutions to participate with definitive confidence and proper governance.

With this clarity, institutions can justify allocating stake, supporting validators, and building Shariah-aligned products on-chain, without trying to explain staking as a grey area. Over time, that opens the door to a wider set of Islamic finance use cases like tokenized sukuk, compliant yield structures, and regulated real-world asset issuance, built on infrastructure that has been reviewed at a protocol level.

How is proof-of-stake different to or better than proof-of-work?
Gadit: Proof of Work relies on energy-intensive mining where participants compete by burning computational power. That model is costly, inefficient, and increasingly difficult to justify at scale.

Proof-of-stake works differently. Validators are selected based on stake and performance, not brute force computing. They secure the network by validating transactions and maintaining consensus, and they are penalized if they act dishonestly or fail to perform.

From a practical perspective, Proof-of-stake is more energy-efficient, more scalable, and better suited for institutional participation. From a Shariah perspective, it also allows clearer alignment with principles around productive effort, accountability, and risk sharing when designed correctly.

Can you elaborate on ZIGChain’s mechanism operating under the Wakala bil Istithmar structure?
Gadit: Wakala bil Istithmar is an investment agency relationship. In plain terms, it means an owner of capital appoints an agent to deploy it in a productive activity, and the outcome depends on performance, it is not a promised return.

That maps well to how staking should work when designed properly. When someone stakes on ZIGChain, the stake supports validators who do the operational work that keeps the blockchain running.

Validators are not being paid because money was parked somewhere. They are being paid because they are validating blocks, processing transactions, keeping uptime, and following strict network rules.

The important Shariah point is how the return behaves. Rewards are variable. They depend on real network conditions and validator performance. There is also downside risk through penalties if a validator behaves improperly or fails to meet requirements. That combination of work, accountability, and risk is what makes the structure fit the Wakala bil Istithmar lens.

So the core idea is simple. The yield is tied to productive activity and shared outcomes, not a fixed entitlement for providing capital.

The Securities and Exchange Commission of Pakistan (SECP) has approved the country’s first independent Shariah screening mechanism for securities listed on the Pakistan Stock Exchange, allowing a private firm to conduct compliance assessments for investors and market participants.

The approval has been granted to Al-Hilal Shariah Advisors Pvt Limited, enabling the company to independently screen listed securities and publish Shariah-compliant lists based on its approved methodology.

According to SECP, the move introduces an alternative regulatory pathway under the Shariah Governance Regulations 2023. It is intended to broaden participation in Shariah-compliant investment services while encouraging competition in the Islamic capital markets segment.

Previously, Shariah compliance screening for listed companies was carried out by the Pakistan Stock Exchange in partnership with Meezan Bank Limited and Al Meezan Investments.

As of December 31, 2025, 308 out of 535 securities listed on the Pakistan Stock Exchange are classified as Shariah-compliant, representing 63% of the market’s total capitalization. These companies account for Rs12,373 billion of the exchange’s total market value of Rs19,679 billion, according to SECP.

Under the new approval, Al-Hilal Shariah Advisors will apply a screening methodology based on the latest available financial information and predefined criteria to include or exclude securities from the Shariah-compliant list.

The regulator said the initiative could also support the development of new Islamic equity indices within Pakistan’s capital market. However, any such index will require coordination with the Pakistan Stock Exchange before it can be launched.

SECP added that Shariah-compliant securities lists will now be updated and published quarterly, replacing the previous six-month screening cycle used for compliance reviews.

The Islamic Development Bank Institute (IsDBI) has received a US patent for a blockchain consensus mechanism known as Proof-of-Use (PoU), a system designed to support digital financial services and expand innovation in the Islamic fintech sector.

The mechanism allows participants to validate blockchain transactions based on their level of activity on the network rather than computing power or financial stake. IsDBI said the model is intended to encourage wider participation in digital finance while improving efficiency and reducing energy consumption.

Alternative to existing blockchain models

Blockchain networks typically rely on consensus systems such as Proof-of-Work or Proof-of-Stake to validate transactions and maintain security.

Proof-of-Work, used by cryptocurrencies such as Bitcoin, requires powerful computers to solve complex mathematical problems, a process that consumes large amounts of electricity. Proof-of-Stake allows participants who hold larger quantities of tokens to play a greater role in transaction validation.

In contrast, the Proof-of-Use model gives users validation authority based on their participation in the network. Participants verify each other’s transactions, with activity levels determining their ability to validate blocks.

According to IsDBI, the approach reduces energy consumption and lowers barriers to entry by removing the need for specialised hardware or large financial holdings.

Potential applications in Islamic fintech

The institute said the model could support a range of digital financial services aligned with the principles of Islamic finance, including fairness, transparency and broader access to financial services.

Potential applications include cross-border payment systems, trade finance platforms for small businesses, digital identity systems for unbanked populations, and blockchain-based tools for charitable giving and halal investment.

By linking validation power to usage rather than ownership, the system is designed to reduce concentration of control within blockchain networks and encourage participation from a broader base of users.

Part of broader digital finance strategy

IsDBI said the patent forms part of its wider strategy to promote innovation in financial technology across its member countries. The organisation is exploring partnerships with technology developers and financial institutions to test and deploy the Proof-of-Use model in practical applications.

While further work is required to test scalability and security, the institute said the new mechanism could help support digital financial infrastructure in markets where access to conventional banking services remains limited.

The initiative reflects growing interest among development institutions in using blockchain technology to expand financial inclusion and improve the efficiency of digital financial services.

Pakistan’s National Assembly has passed the Virtual Assets Bill, 2026, formally legalising cryptocurrencies and establishing a regulatory framework for digital assets in the country’s financial system.

The legislation, introduced by Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry, had previously been approved by the Senate earlier this year. It provides for the creation of a specialised regulatory authority responsible for licensing, supervising and regulating virtual assets and virtual asset service providers (VASPs).

According to the government, the bill recognises virtual assets as an increasingly significant component of the global financial system and seeks to introduce oversight aimed at improving investor protection, transparency and market stability.

Under the new framework, the proposed authority will oversee digital asset trading platforms, support the development of Pakistan’s blockchain and cryptocurrency sectors, and strengthen safeguards against financial crimes such as money laundering and fraud. The legislation also highlights the need to align with international regulatory standards and includes provisions for Shariah-compliant virtual asset services.

Analysts say the move could strengthen Pakistan’s position in the emerging digital asset market by providing legal certainty for investors and businesses operating in the sector. A formal regulatory structure may also encourage foreign investment and support the development of fintech innovation in the country.

The bill represents Pakistan’s first comprehensive attempt to integrate cryptocurrencies and other virtual assets into the country’s regulated financial ecosystem while balancing technological innovation with financial risk management.

London-based mobility and financial services platform GoCab has secured $45 million in new financing — including $15 million in equity and $30 million in debt — to support its expansion across African markets and develop its Shariah-compliant vehicle financing model.

The equity round was led by E3 Capital and JANNGO Capital, with participation from KawiSafi Ventures and Cur8 Capital, while Cur8 Capital and other lenders provided the debt financing. As part of the transaction, Vladimir Dugin of E3 Capital and Fatoumata Bâ of Janngo Capital will join GoCab’s board, reflecting investor support for the company’s growth strategy.

GoCab operates a fintech-enabled mobility platform that allows ride-hailing and delivery drivers to acquire vehicles through Shariah-compliant financing structures. Drivers make daily payments and typically gain full ownership within about three years, with digital tools enabling them to track ownership progress and manage repayments.

The company currently operates in Côte d’Ivoire, Senegal, Morocco, Chile and Nigeria, employing approximately 120 people. According to the company, it generates more than $17 million in annual recurring revenue and has financed over 1,000 vehicles since launch.

Investment firm Shorooq on Monday launched a Qatar-backed $200 million fund aimed at supporting late-stage companies preparing for initial public offerings (IPOs), as the region sees growing demand for capital to take mature businesses to public markets.

The late-stage growth vehicle, part of Shorooq’s Qatalyst Series, will provide equity financing to established companies across the Gulf Cooperation Council (GCC) and Asia, with a focus on helping businesses strengthen governance, scale operations and achieve public-market readiness.

The Qatar Investment Authority (QIA) is an anchor investor in the fund, which was unveiled at Web Summit Qatar 2026, underscoring Qatar’s continued role in backing regional growth and capital markets development.

According to Shorooq, the fund will target companies with proven scale, strong fundamentals and sustainable unit economics that are positioned to pursue listings locally or internationally.

Investment priorities include fintech infrastructure, software and artificial intelligence, sectors where Shorooq sees a pipeline of mature companies seeking capital to bridge the gap between private growth and public listings.

Egyptian fintech NowPay has entered the Saudi market through a new joint venture with Tas’heel, launching a platform aimed at providing Shariah-compliant payroll and employee financial wellness services across the Kingdom.

The venture, called NowAccess, has been established with a $20 million investment from Tas’heel, which will hold a 75% stake, while NowPay owns the remaining 25%. The partnership combines NowPay’s payroll-linked financial technology with Tas’heel’s nationwide network of more than 310 service locations to distribute services to employers and employees.

The move follows a memorandum of understanding agreed earlier this year and comes as Saudi Arabia continues to see rising demand for locally compliant payroll and employee benefits solutions. According to United International Holding, Tas’heel’s parent company, NowAccess is intended to operationalise that agreement and scale services quickly within the Saudi enterprise sector.

NowAccess will offer payroll administration, HR integrations and salary-linked financial tools, including earned wage access, designed to meet Saudi regulatory requirements and Shariah standards. The companies said the focus is on reducing payroll friction for employers while giving employees access to structured financial services linked to their salaries.

The $20 million investment will be used to build a Saudi-based engineering and operations team and to localise products for compliance, payments infrastructure and customer support. Initial market entry will involve pilot programmes with employers, followed by a phased rollout across sectors that already prioritise payroll benefits.