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Shariah-Approved XRP: Entryway to the $2 Trillion Islamic Financial Sector

Shariah-Approved XRP: Entryway to the $2 Trillion Islamic Financial Sector

Bitget-RWA2025/09/26 23:20
By:Coin World

- Bahrain's SRB certifies XRP as Shariah-compliant, enabling its use in Islamic finance markets governed by ethical principles. - This approval positions XRP as a cost-effective settlement solution in Gulf regions with $2 trillion Islamic finance sectors. - Analysts highlight the certification as a regulatory breakthrough, potentially boosting XRP adoption by banks and fintechs in the Middle East. - On-chain data shows growing investor confidence, with XRP's price potentially targeting $5.00–$5.50 by year-

The Shariyah Review Bureau (SRB) of the Central Bank of Bahrain has officially recognized

as compliant with Shariah law, representing a significant milestone for Ripple’s digital currency and its prospects within Islamic finance sectors [ 2 ]. This endorsement, granted by a leading Shariah advisory authority in the Middle East, affirms that XRP meets the requirements for use in financial products and transactions that observe Islamic ethical standards [ 2 ]. The ruling is especially impactful in regions like Bahrain, Saudi Arabia, and the UAE, where Islamic financial regulations oversee substantial volumes of cross-border payments and remittances [ 3 ].

With the SRB’s approval, XRP is now positioned as a practical option for organizations seeking affordable and compliant settlement solutions throughout the Gulf and the wider Middle East [ 2 ]. Annual remittance flows from these areas total hundreds of billions of dollars, and XRP’s Shariah alignment grants it entry into markets that require financial tools to adhere to Islamic rules—such as bans on interest (riba), excessive uncertainty (gharar), and unethical conduct [ 3 ]. The XRP Ledger, designed for rapid and cost-effective international payments, now holds a competitive advantage in regions where Islamic finance is predominant [ 3 ].

This achievement highlights Ripple’s broader ambition to strengthen its presence in the Islamic finance industry. The global Islamic finance market, valued at $2 trillion, has traditionally approached cryptocurrencies with caution due to religious and ethical reservations [ 3 ]. By obtaining Shariah certification, XRP addresses these concerns and aligns with the transparency and purpose-driven nature of Islamic finance. Experts believe this approval could encourage adoption among banks, fintech firms, and businesses in the Gulf, where Ripple’s solutions may help modernize remittance and interbank payment systems [ 3 ].

Industry observers view the certification as both a regulatory and cultural milestone. Financial analyst Pumpius noted that XRP’s compliance with Shariah principles boosts its reputation beyond speculative investment, presenting it as a functional token that can facilitate currency exchange and global transactions [ 2 ]. This development fits with the growing institutional interest in blockchain technology across the Middle East, where its benefits of transparency and efficiency are increasingly acknowledged [ 3 ].

Blockchain data indicates that investor sentiment toward XRP is improving. Crypto analyst Tom Tucker reports that since August 22, XRP has seen steady accumulation in the $2.70–$3.00 range, signaling renewed confidence among investors [ 4 ]. This comes after a period of profit-taking in July following a mid-year surge. Should XRP surpass the $3.00 mark, it could spark a bullish trend, potentially driving the price toward $5.00–$5.50 before the year concludes [ 4 ]. Achieving this would represent a significant psychological and multi-year high for the asset.

This certification also highlights Bahrain’s leadership in digital financial innovation. The Central Bank of Bahrain has consistently promoted itself as a fintech leader in the region, and this move further cements its role in guiding the digital evolution of Islamic finance [ 3 ]. By approving XRP, Bahrain is both embracing global financial trends and upholding local ethical standards, potentially setting an example for other Gulf states [ 3 ].

Despite these advances, certain obstacles persist. Shariah compliance varies by jurisdiction, meaning Ripple must work with different regional authorities to achieve wider acceptance [ 3 ]. Differences in how Islamic law is interpreted across countries may require Ripple to adapt its compliance approach. Nevertheless, the Bahrain certification establishes a crucial starting point for Ripple’s expansion into additional Islamic finance markets, including Saudi Arabia and the UAE [ 3 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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