What is Islamic Finance in Defi?

Qintar Crosschain
3 min readMar 16, 2021


We are convinced that the future will be a multi-chain one as applications start to spread across multiple blockchains. Many users and apps will be coming from Ethereum and for this reason we created Qintar.
Qintar is built on Ethereum and Polkadot blockchain and operates under the code of conduct borrowed from the Islamic Finance.

Purpose of Islamic Finance

Islamic Finance was made to make Muslim’s community better-off. We want to take Muslims from being among the poorest in society to the richest. We think that this is the most effective way to deal with problems like discrimination, under-representation and poverty.

“More broadly, Islamic banking is becoming accepted as a significant part of the global banking sector and as one of the means to increase financial inclusion using an alternative philosophy.”

-Ashruff Jamall Partner, Global Islamic Financial Services Leader

Qintar’s concept of Islamic Finance

The core principles of Islam lay great emphasis on social justice, inclusion, and sharing of resources between the haves and the have nots. Islamic finance addresses the issue of “financial inclusion” or “access to finance” , by understanding how Islamic Finance works you will notice that it has provided many solutions for Islamic banking after addressing the problems with the normal one.

Qintar’s Role In Islamic Finance

Qintar DeFi operates under the code of conduct borrowed from the theory of Islamic Finance, which in essence means fair access to financial opportunities for everyone with equal share of risk and gains. The theory of Islamic Finance strongly opposes predatory lending and strives to create win-win environment for both the borrower and lender. Qintar is an ecosystem that includes 3 Islamic finance tools: Murabaha, Modaraba, and Islamic Community Bank (Peer to Peer Lending).

Qintar DeFi aims to deliver Microfinance opportunities for underbanked people, who are not knowledgeable on the crypto market.

Sharia-compliant DeFi

From Islamic point of view, interest means effortless profit which is free of exchange.The basic concept of Islam is that wealth should not be accumulated or wasted, but must be exploited for productive use so that the owner, society and the less privileged share the benefits. The result is that the money may not be left idle and interest or profit is charged from the mere use of the money by another party without regard to the risks or profits that may ensue. Only educators seek profit or interest without risk. This runs counter to the foundations of an Islamic economy based on equity and balance.

Why is DeFi compliant with the prohibition of interest?

Islamic banking could benefit blockchain and crypto community by giving it more legitimacy. Islamic banking has strict standards for financial transactions that must comply with Sharia law — another example of centralised authority. And yet blockchain tech, the quintessence of decentralisation, has been working with more and more Islamic banks across the world.

Likewise, blockchain and cryptocurrency could bring about many benefits for Islamic banking. Interconnectedness of these two spheres is creating potential new markets and new business opportunities and investors of all types can take advantage, with the right approach. (Farooque,1999)

Qintar Mission Statement

Qintar Cross-chain Ecosystem serves as a mean of payment and focuses on products and services in Islamic countries. It facilitates seamless and transparent use of digital currency within the ISL Blockchain (Sharia-compliant) technology.

Farooque, A., J., M. (1999). Shariah and the evolution of property rights: South Asia. Managerial Finance. DOI: https://doi.org/10.1108/03074359910766398



Qintar Crosschain

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