Key Takeaways
- Binance has launched Sharia Earn, a Halal Crypto Staking product specifically designed for Muslim investors, enabling them to earn rewards while strictly adhering to Islamic finance principles.
- The product is certified by Amani Advisors, a leading Sharia advisory firm. It uses a Wakala agreement structure and ensures that staking rewards are halal, with all assets and processes regularly vetted by Islamic scholars.
- Sharia Earn is initially supporting BNB, Ethereum (ETH), and Solana (SOL). Rewards are either distributed daily in Binance coin (BNB) or reflected in tokenized forms – Wrapped Beacon ETH (WBETH), Binance Staked SOL (BNSOL) – whose values grow with halal staking returns.
- The product is being rolled out across many countries, addressing an Islamic finance market worth trillions of dollars.
- Binance’s move is part of a broader trend, with rivals like Bybit and BurjX also entering the Islamic finance space. This innovation could reshape global crypto adoption, particularly among Muslim investors previously excluded from interest-based products.
Binance launches Sharia-compliant crypto staking product
The cryptocurrency industry has crossed a significant religious and cultural threshold. Binance, the world’s largest digital asset exchange, has launched a new product called Sharia Earn, which offers Muslim investors an opportunity to earn crypto rewards while maintaining strict adherence to Islamic laws.
The product represents more than technological innovation. It signals the crypto industry’s evolution towards global inclusion, as it creates a bridge between centuries-old Islamic principles and cutting-edge blockchain technology. Binance posted on X:
Breaking Down Religious Barriers in Digital Finance
Islamic finance operates under fundamental prohibitions that have historically excluded Muslims from many investment opportunities. The concept of riba (interest) stands as perhaps the most significant barrier, alongside gharar (excessive uncertainty) and investments in businesses deemed haram (forbidden).
Traditional crypto staking has always presented a dilemma. While the underlying blockchain technology aligned with Islamic principles of transparency and decentralization, the fixed-return nature of many staking products resembled prohibited interest-based transactions.
Sharia Earn solves this problem through careful structural design. This means every aspect of the product, from how funds are staked to how rewards are generated, has been designed to meet the principles of Islamic finance. Specifically, Sharia Earn avoids riba, gharar, and any involvement in any other non-compliant aspects.
It is being launched with support for three major cryptocurrencies: Binance Coin (BNB), Ethereum (ETH), and Solana (SOL). Each token underwent rigorous screening by Islamic finance scholars to ensure compliance with religious law. The product has been certified by Amani Advisors, a globally recognised Sharia advisory firm.
Funds are staked through a Wakala (contract of an agency) agreement, a structure that enables Halal delegation of capital. All underlying protocols are carefully selected and reviewed every quarter to ensure ongoing Sharia compliance.
Through Sharia Earn, all rewards are generated by halal (permissible) staking activities that comply with Islamic finance principles.
- For BNB, rewards are derived from on-chain yields and accrue daily at a variable rate, distributed directly to users’ spot wallets.
- For ETH and SOL, users receive WBETH and BNSOL tokens upon subscription. These tokens reflect both the principal and accumulated halal rewards. The value of these tokens increases over time based on the underlying staking return, and users can redeem them for ETH or SOL at any time.
The Rate of Return (ROR) or expected rate of return for Sharia Earn is based on the on-chain staking returns of the respective tokens. These rates reflect the expected halal rewards generated from permissible staking activities.
- For BNB, the Rate of Return (ROR) corresponds to the reward rate used in Simple Earn Locked Products.
- For ETH and SOL, the ROR is embedded in the value growth of WBETH and BNSOL, which represent both the staked principal and accrued rewards.
All reward calculations are vetted by Sharia scholars to ensure compliance with Islamic finance principles.
Global Market Opportunity Drives Innovation
Sharia Earn will be available for users in the following countries: Afghanistan, Algeria, Bangladesh, Bhutan, Egypt, Indonesia, India, Iraq, Jordan, Kuwait, Lebanon, Libya, Maldives, Morocco, Nepal, Oman, Pakistan, Palestinian territories, Qatar, Saudi Arabia, Sri Lanka, Sudan, Tunisia, Turkey, United Arab Emirates (UAE), Yemen, Uzbekistan, Kyrgyzstan, Turkmenistan, Azerbaijan, and Tajikistan.
“Crypto adoption has increased drastically across many of the Muslim-majority markets, but until now, certain yield-generating products have remained out of reach. We built Sharia Earn to change that,” said Bader Al Kalooti, Binance’s regional operations head for MENA.
The numbers behind this launch tell a compelling story. Islamic finance is said to have grown into a $4 trillion-plus global industry, yet crypto participation among Muslim investors has remained artificially constrained by religious compliance concerns.
The company’s research revealed persistent demand during community engagements across Muslim-majority regions. “There’s a clear demand from the Muslim community for halal investing opportunities. It’s been raised in multiple community meetups everywhere we go around the region,” Al Kalooti noted.
Competitive Landscape Emerges
Binance’s entry follows earlier moves by other exchanges. Dubai-headquartered Bybit previously launched what it claimed was the world’s first Islamic crypto account, working with ZICO Shariah Advisory Services for certification. New platforms specifically targeting this market are also emerging. BurjX, founded in the UAE by Canadian entrepreneurs, plans to launch as a fully Sharia-compliant exchange pending regulatory approval.
This competitive activity reflects broader recognition of Islamic finance’s growth potential within the crypto sector.
Strategic Implications for Global Crypto Adoption
Binance CEO Richard Teng positions this launch as more than a product expansion. “This launch marks a new chapter — one where crypto meets Islamic finance, not as an exception, but as a natural evolution,” he said. Institutional interest represents another significant opportunity. Islamic banks and sovereign wealth funds across the Middle East and Southeast Asia now have access to crypto exposure through religiously compliant channels.
The success of Sharia Earn could accelerate similar product development across the industry, potentially unlocking unprecedented levels of crypto adoption in markets previously constrained by religious considerations.
As digital assets continue their global expansion, Binance’s approach demonstrates how technological innovation can respect cultural values while opening new frontiers for financial inclusion.
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