A Malaysian company HelloGold, has earned the world’s first shariah-compliance certification.
Using token called GOLDX, it's certified by the Shariah Supervisory Board of Amanie Advisors, making it the world’s first fully operational Ethereum ERC20 token backed by 99.99% investment-grade gold. GOLDX received sharia-compliant certification because its issuance process and audited asset holdings ensure transparency, certainty and immediacy of transactions.
These are the principles in Islamic financial contracts.
In the Islamic faith, it’s believed that economic activity should be based on real, physical assets. Earning money through speculations or gambling, through banking products that offer returns via interest, aren't compliant with the Sharia law.
The crytocurrency market is very volatile. There are big money to be made, and tons to lose from the rest.
Unlike most cryptocurrencies which are not backed by a commodity, the GOLDX token is backed by physical allocated investment-grade gold. Each GOLDX token being represented by one gram of gold that is vaulted in a Singapore vault and insured.
What this means, HelloGold ensures that GOLDX tokens are only issued according to the amount of gold physically held, and that this information is publicly accessible and verified independently by its vaulting partner.
Founded in 2015 and headquartered in Kuala Lumpur, HelloGold's GOLDX involves gold digital applications that changes the way people buy and sell gold. The company was awarded the 'Most Innovative Islamic Retail Banking Product' and won membership to the TenXClub'.
"Having earned the world’s first sharia-compliance certification for our GOLDX token, HelloGold has opened the door to over a billion Muslims to access a new financial product. As the international Islamic financial market continues to grow and draw interest from non-Muslim countries, the Islamic financial services industry’s total worth has reached USD1.9 trillion in 2016," said Robin Lee, CEO and co-founder of HelloGold
"Our GOLDX token will help accelerate financial inclusion by providing Muslim customers with transparent and safe access to gold through a digital token, as well as the ability to use their stored gold as value that can be traded beyond the HelloGold system."
