A Memorandum of Understanding (MoU) has been signed between Dubai Islamic Bank and Crypto.com, a first-of-its-kind global agreement to integrate digital currencies with Islamic banking. This agreement opens up multiple opportunities to develop Sharia-compliant platforms, including Islamic crypto-bonds and tokenization of real assets.
The MoU was signed by Mohammed Al Hakeem, CEO of Crypto.com in the UAE, and Musabah Al Qaizi, Chief Digital Officer at Dubai Islamic Bank, marking a major step towards strengthening cooperation with leading financial institutions in the UAE, as they continue to provide more innovative services to over 100 million customers worldwide.
Signing the first agreement to facilitate digital currency payments in the UAE
The agreement was signed at the headquarters of Dubai Islamic Bank, where the MoU focuses on a set of key points, most notably enhancing the use of the Crypto.com application and card through Dubai Islamic Bank channels, which opens new horizons for innovation in the field of digital banking services and includes rewards campaigns for the bank’s customers.
Through this partnership, digital currency payments will be facilitated through the bank’s systems, in addition to supporting fiat currencies through the Crypto.com app.
The two institutions will also collaborate to explore the tokenization of real assets, such as Islamic bonds and real estate portfolios, across the Kronos network, work on integrating custody services and over-the-counter (OTC) trading execution, and provide digital currency trading solutions to clients in a technically integrated manner.
Integrating modern digital solutions with Sharia principles
Musabah Al Qaizi, Chief Digital Officer at Dubai Islamic Bank, said: “This partnership with Crypto.com represents a significant turning point for the bank, as we continue to lead the Islamic finance sector and its technological innovations by exploring innovative areas such as the tokenization of Islamic sukuk and the tokenization of real assets.
He added, “We seek to achieve our strategic vision to integrate modern digital solutions while adhering to Sharia principles. This agreement will enable us to set new standards for providing Sharia-compliant banking solutions that provide safe, efficient and flexible benefits to our customers. It will also contribute to redefining the relationship between Islamic banking services and digital asset management, paving the way for further future developments in this growing sector.”
For his part, Mohammed Al Hakeem, CEO of Crypto.com in the UAE, said: “We are proud to conclude this historic partnership with Dubai Islamic Bank, one of the most prominent banks in the region. This agreement allows us to explore the best ways to improve and expand our services to meet the needs of our customers in the UAE and the wider Gulf region.”
He added, “This agreement represents an exceptional opportunity to integrate digital currencies with Islamic banking services, paving the way for the development of innovative solutions such as Islamic tokenized sukuk and Sharia-compliant digital currency financing through strategic cooperation with various sectors. We look forward to providing innovative payment solutions and exploring unprecedented possibilities to support the Islamic finance sector.”
The UAE is a hub for innovation in Islamic finance and technology, and as the largest and most important country playing a pivotal and advanced role in this field, Dubai Islamic Bank is a real choice to move forward with this initiative.
The announcement comes as Crypto.com continues to expand its global and regional presence, following the recent acquisition of Orion Principals Limited, regulated by the Abu Dhabi Global Market (ADGM), as well as the launch of the AED Wallet, which provides users in the UAE with the ability to quickly and seamlessly deposit and withdraw in local currency.