Solowin Holdings (NASDAQ: AXG), through its regulated stablecoin issuer AX Coin Bahrain B.S.C. Closed, has announced that its AXBHD stablecoin framework has completed a formal Sharia review. This makes it the first central bank-regulated stablecoin to receive Sharia certification, a milestone that could significantly expand its appeal among Islamic financial institutions and investors.
The review, conducted by Shariyah Review Bureau W.L.L., evaluated the AXBHD’s issuance mechanism, reserve investment framework, governance arrangements, and revenue model against Islamic finance principles. The certification also includes the establishment of an ongoing Sharia governance framework to ensure continued compliance.
This development is important because it addresses a critical barrier to entry for stablecoins in the Islamic finance sector. Islamic finance prohibits interest (riba) and speculative activities, and requires asset-backing and risk-sharing. By obtaining Sharia certification, AXBHD aims to reassure Muslim investors and institutions that it operates in accordance with these principles, potentially unlocking a significant market segment.
According to the company, the certification reinforces its commitment to transparency and responsible governance as it prepares to launch the AXBHD stablecoin. The stablecoin is pegged to the Bahraini dinar (BHD), which itself is pegged to the U.S. dollar, providing stability and potentially serving as a bridge for cross-border transactions in the Gulf region.
Solowin Holdings, established in 2016, combines blockchain and artificial intelligence technologies to operate a fully compliant dual-token digital economy super platform. Its mission is “Mobilizing Tokens 24/7,” and it operates two core business pillars: Digital Asset Tokens and AI Tokens. Its offerings span stablecoin issuance and payments, asset tokenization, securities trading, and asset management, as well as AI-powered services including cloud infrastructure, Know-Your-Agent verification, and token router.
The Sharia certification could also enhance the credibility of stablecoins in general, as the industry faces regulatory scrutiny and questions about reserve backing and governance. By meeting the rigorous standards of Sharia compliance, AXBHD may set a precedent for other issuers seeking to serve Islamic markets.
For more information on the full press release, visit https://ccw.fm/AtbdNAbout.
Solowin Holdings is a leading global regulated fintech company. Through its integrated ecosystem, including AX COIN, AX ONE, FERION, SOLOMON, SCION, and KOVAR, AXG empowers global institutions and investors to capitalize on the rapid growth of the dual-token economy. For more information, visit the Company’s website at https://www.alloyx.com or its Investor Relations webpage at https://ir.alloyx.com.
