Breaking News: The world’s first truly Sharia-compliant DeFi platform is here. BarakaFi combines cutting-edge blockchain technology with Islamic finance principles to serve over 1 billion Muslims seeking halal financial solutions.
SmartCredit.io has been at the forefront of DeFi for 5 years, offering P2P DeFi solutions as opposed to Peer-to-Pool-to-Peer (P2P2P) solutions. The main reason is that P2P is a much less regulated activity than P2P2P.
But there is one more breakthrough—the P2P architecture allows us to enter a market that other DeFi companies are unable to serve because of their asset pooling: Islamic Banking.
That’s why we created a Joint Venture with Haqq Network and ported the SmartCredit.io solution into the Haqq Network blockchain. We also made it fully Sharia-compliant and Islamic banking compatible.
Our JV has launched as BarakaFi.com – Access halal DeFi today!
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What is Islamic Banking?
Islamic Banking is Sharia-compliant banking that follows Islamic law (Shariah) principles. Unlike conventional Western banking, halal finance ensures all financial activities are riba-free (interest-free) and ethically structured.
The most important Sharia-compliant banking principles are:
- P2P (Peer-to-Peer) Structure – Direct connections between lenders and borrowers, no asset pooling
- Risk Sharing – The lender must bear risk alongside the borrower
- Riba-Free – Interest (riba) is strictly prohibited in Islamic finance
- Ethical Investments – No funding of prohibited industries (alcohol, gambling, etc.)
- Asset-Backed Financing – All transactions must be backed by real assets
While “Westerners” are accustomed to conventional banking, a thriving parallel ecosystem of Islamic banking serves more than 1.8 billion Muslims worldwide who seek halal investment options and Sharia-compliant financial services.
However, until now, there have been no Web3 solutions to this massive, underserved ecosystem. This is because today’s DeFi platforms cannot be used for Islamic Banking due to their structure…
This means the global Islamic population has been unable to access DeFi borrowing/lending solutions because of non-compliance with Sharia law. The reach and impact of Web3 DeFi could be exponentially higher if Islamic finance principles were properly integrated. However, most DeFi platforms today are designed exclusively for the “Western” banking system without considering the fundamental requirements of halal blockchain finance.
Why Traditional DeFi Cannot Serve Islamic Banking
Islamic Banking requires P2P (peer-to-peer) systems where lenders and borrowers transact directly. However, today’s DeFi lending/borrowing protocols are built on P2P2P (peer-to-pool-to-peer) systems. This P2P2P architecture fundamentally violates Islamic Finance principles.
Here’s why conventional DeFi is not halal-compliant:
Asset Pooling Violates Sharia Law
Islamic Finance requires complete transparency – the source of funds must be known to both parties. However, pooling assets on the lender’s side means no single individual can be identified, which violates the core principle of accountability in Sharia-compliant transactions.
Interest (Riba) is Prohibited
Traditional DeFi platforms charge interest on loans, which is explicitly forbidden (haram) in Islamic banking. Interest-based systems cannot be made halal-compliant through simple modifications.
Risk Must Be Shared
In Islamic banking, the lender must share in the risk of the investment or loan. Conventional DeFi’s guaranteed return structures violate this principle of shared prosperity and loss.
The bottom line: None of the existing DeFi systems can be used for Islamic Banking without fundamental architectural changes to ensure Sharia compliance.
However, SmartCredit.io is built as a P2P system from the ground up—giving it an inherently Islamic banking-compliant architecture. That’s why we created the Joint Venture with Haqq Network, ported the entire system to their blockchain, modified it to be fully Sharia-compliant, and launched BarakaFi to serve the global Muslim community.
💡 Did You Know? The global Islamic finance market is worth over $3 trillion and growing at 10-12% annually, yet less than 1% of this market has access to blockchain-based halal financial services.
Introducing BarakaFi.com: The First Halal DeFi Platform
BarakaFi.com is a groundbreaking joint venture between Haqq Network and SmartCredit.io, created specifically for offering 100% Sharia-compliant Islamic Banking on the blockchain:
- SmartCredit.io brings 5 years of proven DeFi technology and expertise
- Haqq Network brings Islamic finance expertise, Sharia certification, and marketing to Muslim communities worldwide
Current BarakaFi Features (Live Now):
- ✅ Halal Crypto Financing – Borrow cryptocurrency in a Sharia-compliant way
- ✅ Riba-Free Loan Positions – Invest in Islamic finance without interest
- ✅ Microloans – Access small loans as low as $10 (see below)
- ✅ P2P Transparency – Know exactly who you’re transacting with
- ✅ Asset-Backed Transactions – Every loan is backed by real cryptocurrency collateral
Coming Very Soon:
- 🔜 Halal Investment Funds – Diversified Sharia-compliant portfolios
- 🔜 AI-Driven Islamic Investment Funds – Smart algorithms optimizing halal returns
- 🔜 Islamic Savings Accounts – Earn halal returns on your crypto holdings
- 🔜 Mobile App – Access BarakaFi from anywhere
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Revolutionary Feature: Islamic Microloans
The most transformative feature of BarakaFi.com is our halal microloan capability – made possible by Haqq Network’s near-zero transaction costs.
The current version of SmartCredit.io runs on the Ethereum network, which has relatively high transaction costs (gas fees). Because of this, the minimum practical loan size is around $250.
However, Haqq Network’s innovative blockchain technology has virtually eliminated transaction costs, making it economically feasible to offer tiny microloans – as small as $10-$50.
Why Islamic Microloans Matter:
- Financial Inclusion – Small business owners can access capital without riba
- Emergency Funds – Quick access to halal emergency financing
- Building Credit – Establish a Sharia-compliant credit history
- Entrepreneurship – Fund small ventures while staying halal
- No Minimum Requirements – Access finance regardless of wealth level
This is a game-changer for millions of Muslims worldwide who need small amounts of capital but refuse to use interest-based conventional microfinance.
Banking the Unbanked and Under-Banked Muslim Population
The unbanked are people who have no access to formal banking services. The underbanked are those who have bank accounts but cannot access fair-priced financial services.
Critical statistics:
- Over 400 million Muslims are unbanked globally
- The ratio of unbanked and under-banked in Islamic countries is 2-3x higher than in Western countries
- 72% of Muslims in some regions cite religious concerns as why they avoid conventional banking
- The Islamic finance gap represents a $1 trillion+ opportunity
Web3 DeFi solutions have historically focused on “Western” markets, completely ignoring the requirements of Islamic Banking. This means the big narrative of “Web3 solving financial inclusion” has failed to deliver for the world’s 1.8 billion Muslims. Until now.
How BarakaFi Solves This Crisis:
- ✅ 100% Sharia-Compliant – Certified halal by Islamic scholars
- ✅ Ultra-Low Costs – Near-zero transaction fees on Haqq Network
- ✅ Microloans – Access as little as $10 in financing
- ✅ No Bank Account Required – Just a crypto wallet
- ✅ Riba-Free – Zero interest, ever
- ✅ Global Access – Available 24/7 anywhere in the world
- ✅ Transparent – Full visibility into all transactions
BarakaFi provides genuine financial access to both unbanked and under-banked Muslims at costs that are 10-50x lower than traditional Islamic banks, while maintaining complete Sharia compliance.
How BarakaFi Works: A Simple Guide
For Borrowers (Seeking Halal Financing):
- Connect Your Wallet – Use MetaMask or any Web3 wallet
- Provide Collateral – Deposit cryptocurrency as security (asset-backed financing)
- Request Financing – Choose your loan amount and terms
- Get Matched – Our P2P system connects you directly with a halal lender
- Receive Funds – Get your financing instantly, 100% riba-free
- Repay on Schedule – Make payments according to your agreed terms
For Lenders (Seeking Halal Returns):
- Connect Your Wallet – Link your cryptocurrency wallet
- Browse Opportunities – See available halal financing requests
- Select Borrowers – Choose who you want to help (full transparency)
- Earn Halal Returns – Receive profit-sharing instead of interest
- Share the Risk – Participate in true Islamic finance principles
⚖️ Sharia Certification: BarakaFi’s Islamic banking model has been reviewed and approved by Sharia scholars to ensure complete compliance with Islamic law. Our profit-sharing model replaces interest (riba) while maintaining fair returns for lenders.
Why Choose BarakaFi Over Other Platforms?
| Feature | BarakaFi | Traditional DeFi | Islamic Banks |
|---|---|---|---|
| Sharia-Compliant | ✅ Yes | ❌ No | ✅ Yes |
| Low Fees | ✅ Near-Zero | ⚠️ High | ❌ Very High |
| 24/7 Access | ✅ Always | ✅ Always | ❌ Limited |
| Microloans | ✅ From $10 | ❌ $250+ | ❌ $1,000+ |
| Global Access | ✅ Worldwide | ✅ Worldwide | ❌ Local Only |
| Transparency | ✅ Full P2P | ❌ Pooled | ⚠️ Limited |
Frequently Asked Questions (FAQ)
Is BarakaFi really 100% halal and Sharia-compliant?
Yes! BarakaFi has been designed from the ground up to comply with Islamic finance principles. Our profit-sharing model replaces interest (riba), we use P2P transparency instead of asset pooling, and lenders share in the risk. The platform has been reviewed by Sharia scholars associated with Haqq Network to ensure complete compliance with Islamic law.
How does BarakaFi make money without charging interest (riba)?
Instead of interest, BarakaFi uses a service fee model that is Sharia-compliant. Borrowers pay a small, fixed service fee (not percentage-based interest) for platform usage. Lenders receive profit-sharing returns based on the success of the financed activities, which aligns with Islamic principles of shared risk and reward.
What cryptocurrencies does BarakaFi support?
BarakaFi operates on the Haqq Network blockchain and supports Islamic Coin (ISLM), as well as major cryptocurrencies that can be bridged to the Haqq Network. We’re constantly expanding our supported assets to provide maximum flexibility while maintaining halal compliance.
How are my funds kept safe?
BarakaFi uses non-custodial smart contracts, meaning you always maintain control of your cryptocurrency. All transactions are secured by blockchain technology, and loans are overcollateralized to protect lenders. Additionally, the Haqq Network provides enterprise-grade security for all operations.
What makes BarakaFi different from traditional Islamic banks?
BarakaFi offers several advantages: (1) Near-zero transaction fees vs. high traditional bank fees, (2) 24/7 global access vs. limited banking hours, (3) Microloans from $10 vs. minimums of $1,000+, (4) Instant processing vs. days or weeks, (5) Full transparency through blockchain vs. opaque processes.
Can I use BarakaFi if I’m not Muslim?
Absolutely! While BarakaFi is designed to serve the Muslim community, anyone who values ethical finance, transparency, and fair lending practices can use our platform. Many non-Muslims choose Islamic finance principles because they align with ethical investment values.
How do I get started with BarakaFi?
Simply visit BarakaFi.com, connect your Web3 wallet (like MetaMask), and you can start borrowing or lending immediately. No lengthy applications, no credit checks, no waiting – just instant access to halal DeFi.
Ready to Experience Halal DeFi?
Join the Islamic finance revolution. Access Sharia-compliant lending, borrowing, and investing today.
No credit check • No bank account required • 100% Sharia-compliant
The Future of Islamic Finance is Here
BarakaFi represents a historic moment in Islamic finance – the convergence of 1,400 years of Sharia principles with cutting-edge blockchain technology. For the first time, Muslims worldwide can access truly halal financial services that are:
- ✅ Completely riba-free (interest-free)
- ✅ Transparent and accountable (P2P)
- ✅ Globally accessible 24/7
- ✅ Affordable with near-zero fees
- ✅ Inclusive of the unbanked and underbanked
- ✅ Built on shared risk and reward
Whether you’re seeking halal cryptocurrency lending, looking to invest in Sharia-compliant DeFi, or need access to Islamic microloans, BarakaFi provides the complete solution.
The promise of Web3 solving financial exclusion can finally be delivered to the world’s 1.8 billion Muslims. The future of Islamic finance is decentralized, transparent, and accessible to all.
Join us in building the halal financial system of tomorrow.
Related Articles
- Can DeFi serve Islamic Finance? A Comprehensive Analysis
- Crypto Lending Platforms: Earn with DeFi
- Using Crypto as Collateral: Crypto for Loan
Additional Information
- SmartCredit.io – P2P DeFi Lending Platform
- BarakaFi.com – Sharia-Compliant DeFi Platform
- Haqq Network – Islamic Blockchain Network
Follow us on Social Media
- Twitter: https://twitter.com/smartcredit_io
- Gitbook: https://learn.smartcredit.io
- Telegram: https://t.me/SmartCredit_Community
- Haqq Network: https://haqq.network/
- Haqq Network announces JV with SmartCredit.io: Read the announcement
