Crypto.com partnered with the United Arab Emirates’ Dubai Islamic Bank (DIB).
The collaboration is designed to expand the company’s presence in the UAE and Gulf countries at large, according to a Monday (Dec. 30) press release. Its focus is promoting Crypto.com’s app and card via the bank’s channels, “with reward-based campaigns for DIB’s customers, and facilitating cryptocurrency payments via DIB’s systems.”
In addition, the partnership allows fiat currency funding on the Crypto.com app, the release said. DIB and Crypto.com will explore the tokenization of real-world assets, including Islamic sukuks, a type of financial certificate — along the lines of a bond — that complies with Sharia law.
“By exploring innovative avenues such as tokenized Islamic sukuks and the tokenization of real-world assets, we align with our strategic vision to integrate cutting-edge digital solutions while upholding the principles of Sharia compliance,” Dubai Islamic Bank Chief Digital Officer Musabbah Al Qaizi said in the release. “This collaboration allows us to set new-age standards for Sharia-compliant financial solutions, providing our customers with unparalleled security, efficiency and flexibility. It empowers us to redefine the integration between Islamic banking and digital asset management, paving the way for future developments in this emerging sector.”
The UAE is viewed as a center for innovation in Islamic finance and technology with DIB serving “as the largest and most progressive player in the field,” the release said.
The partnership follows another Crypto.com project in the region, as the company earlier this month received a license to launch a Mastercard-powered card in Bahrain. Crypto.com eventually plans to expand the card offering to other Gulf countries, including Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
These efforts are happening in a year that saw change for the crypto sector, with major jurisdictions, including the United States, the European Union and several Asian nations, introducing comprehensive regulatory frameworks “that balanced innovation with consumer protection.” The need for such frameworks remains one of the most pressing problems facing the industry.
“The largest financial institutions are eager to explore tokenized assets,” Nikola Plecas, head of commercialization at Visa Crypto, told PYMNTS in October, adding that they require regulatory certainty to explore these assets at scale.
